🏠 Homeowners Under Pressure: Rising Costs, Shrinking Options, and What It Means for New Jersey

A new national survey confirms what many suspected: American homeowners are feeling financially squeezed. The June 2025 survey was commissioned by Hometap, a home equity investment company, and conducted by AYTM (Ask Your Target Market), a respected U.S.-based market research platform known for its robust consumer insight panels and agile survey tools.

The results speak volumes:

• 54.5% of homeowners report feeling moderately to extremely financially stressed
• 45% cite rising homeownership costs as their top financial concern
• 62.3% are spending a larger percentage of their income on housing than ever before
• 79.5% believe housing costs are rising faster than their incomes
• 29.9% have taken on a side hustle or gig work to stay afloat

📉 These numbers reflect a serious shift in the American housing narrative. Homeownership, once considered the most stable form of wealth building, is becoming a financial burden for many. Yet, despite the hardship, around three-quarters of respondents still see homeownership as part of the American Dream. That belief is more prevalent among older generations: 62% of baby boomers still value owning a home, compared to just 50% of millennials.

This generational divide is further echoed in what stresses them most. Millennials worry about mortgage payments and job stability, while boomers are more concerned with high insurance premiums and unexpected maintenance costs. Regardless of age, a growing number of homeowners are putting off vacations, home improvements, and even basic spending like groceries to keep their homes.

🗽 The New Jersey Angle: High Costs, Tough Choices

If you’re a homeowner in New Jersey, these challenges may feel even more intense. New Jersey consistently ranks among the top five states with the highest cost of living. According to a Rutgers–Eagleton Poll released in July 2025, over 55% of New Jersey residents reported some level of difficulty in covering their rent or mortgage. Alarmingly, 23% said housing costs were “very difficult” to manage, and 16% struggled to afford groceries.

📊 New Jersey’s sky-high property taxes, expensive insurance premiums, and utility costs are compounding the pressure. Many towns in Bergen, Essex, and Middlesex counties have seen year-over-year increases in tax bills, with some homeowners paying over $15,000 annually in property taxes alone. With stagnant wages and limited inventory driving prices up, even long-time homeowners are beginning to feel boxed in.

Yet despite the financial tension, most homeowners are reluctant to sell. Why? Because they are sitting on significant home equity, especially those who bought more than 10 years ago. But tapping into that equity isn’t as easy as it once was. With mortgage rates still hovering in the 6–7% range, refinancing is often off the table. Many are turning to equity-sharing models, such as those offered by Hometap, to access cash without taking on new monthly payments.

💡 Home Equity: The Lifeline or the Trap?

Home equity is often considered the silver lining of rising home values, but it can be deceiving. Yes, your house may be worth more on paper, but converting that value into usable cash is becoming increasingly complex. Traditional solutions like HELOCs or cash-out refinancing come with their own hurdles: high interest rates, strict underwriting, and ballooning monthly payments. In contrast, Hometap’s model provides a lump-sum investment in exchange for a share of the home’s future value when it’s eventually sold or refinanced.

This model is gaining traction in states like New Jersey where liquidity is tight but equity is high. Still, it’s not without risk. Giving up a portion of your future home value might seem like a small price now, but it could reduce long-term wealth-building potential.

🧭 Final Thoughts: Staying Afloat in a Shifting Landscape

The Hometap survey, powered by AYTM’s data platform, reveals a troubling but increasingly common reality: owning a home no longer guarantees financial security. Rising costs are hitting homeowners from all angles — property taxes, utilities, repairs, insurance, and mortgage payments — leaving many to reevaluate their financial futures.

For New Jersey homeowners, the challenge is even more pronounced. With some of the nation’s highest taxes, costliest insurance, and least affordable markets, the squeeze is real. But so is the opportunity — for those willing to explore creative solutions, tap into built-up equity responsibly, or even consider downsizing while the market remains strong.

🏡 Whether you’re house-rich and cash-poor, falling behind on payments, or just trying to stay above water, it’s critical to have a plan. Talk to a local real estate professional, tax advisor, or housing counselor to assess your options. The American Dream of homeownership is still alive — but it requires strategy, adaptability, and sometimes a tough look at your financial reality.

🤝 How New Jersey House Partners Can Help

At New Jersey House Partners, we specialize in helping homeowners just like you make smart, pressure-free decisions about their properties. Whether you’re exploring how to unlock your equity without taking on more debt, considering a downsizing move, or facing challenges like foreclosure, probate, or major repairs, we provide real solutions, not sales pitches.

We’re a small, experienced team based right here in New Jersey. We’ve walked in your shoes. We know how stressful rising costs can be, and we know how to help you move forward confidently whether that means listing your home for top dollar or exploring investor options for a fast, hassle-free sale.

📞 Ready to explore your options? Let’s talk; no pressure, no judgment. Just local experts who understand what New Jersey homeowners are really going through.

👉 Visit www.NJHousePartners.com or call/text 201-214-1349 to schedule a free, confidential consultation.