What Does “House Rich, Money Poor” Mean?
You’re sitting on substantial equity, but your day-to-day finances are strained—mortgage, taxes, insurance, utilities, and debt leave too little for savings or emergencies. You might own a $750,000 home, but can’t cover a $400 surprise expense or afford a down payment on your next move. That is being house rich, money poor—and it’s increasingly common in places like Bergen County.
A National Crisis Meets Local Pressure
Financial stress has spread across the U.S.:
- Nearly 37 percent of Americans can’t handle a $400 emergency; 21 percent have no savings at all (Empower).
- Just 46 percent can cover three months of expenses; 24 percent cannot at all (Bankrate, 2025).
- Auto loan delinquencies have spiked—5 percent of balances are 90+ days late, the worst level in a decade.
- Repossessions are rising: 6.6 percent of subprime borrowers are 60+ days late on car loans.
- Buy Now, Pay Later (BNPL) use grew to over 86 million Americans in 2024, but 41 percent missed payments.
- Even “prime” borrowers are slipping: 90-day delinquencies jumped 109 percent for superprime and 47 percent for prime credits (VantageScore).
- Credit card debt is near historic highs: Average balance among cardholders is $7,528, median is $3,000, and the average per household is $10,767—a 79 percent increase since 1990. Total revolving debt surged 39 percent since 2021, topping $1.3 trillion.
Why It’s Worse in Bergen County
1. Housing Costs Far Outpace Income
- Median sale price in Bergen County: ~$800,000
- Median household income: ~$124,000
This affordability gap means even higher earners feel the squeeze.
2. Taxes, Insurance, Maintenance, and Utilities Rising
- New Jersey has the highest property taxes in the U.S.
- Insurance premiums have climbed 60 percent in five years.
- Utility bills—especially electric and gas—are up by double digits since mid‑2024.
3. Savings Are Too Low
Fewer than 50 percent of households have three months of savings, and many society-wide cannot cover a $400 expense. Most Bergen County families have far less than the recommended six months of reserves (which could total $35,000+).
4. Mounting Debt Pressures
In Bergen County:
- 14.9 percent have debt in collections (median $1,482)
- 6.5 percent carry medical collections
- 5 percent have student loans in default
- 2.1 percent are delinquent on credit cards
Real Example: Equity Doesn’t Equal Flexibility
I recently encountered a homeowner here who owned a $750,000 home (with mortgage) and wanted to downsize. They had significant equity, but absolutely no cash for a down payment on another property. That’s what “house rich, money poor” looks like in real time.
A Risky “Solution”: Selling Future Equity
- Typical deal: Take out 10 percent of your home’s value now and owe 15–20 percent of the future sale.
- If you settle in 0–3 years: they take 15 percent; in 4–6 years: 17.8 percent; in 7–10 years: 20 percent (Hometap tiered pricing model) (LendEDU, Hometap).
- This means if your home appreciates, you could end up paying back two times or more of what you received. If it falls, HEI companies still often claim a minimum share.
According to a CFPB spotlight on home equity contracts, some homeowners repay from $68,000 to $72,000 on a $50,000 advance within three years—even if the home’s value drops slightly. Over decades, repayment can climb into the hundreds of thousands, depending on appreciation and structure. (FinanceBuzz, Consumer Financial Protection Bureau)
This structure reduces financial flexibility and risks trapping homeowners further, especially in volatile markets like NJ.
New Jersey & Bergen County Snapshot
| Factor | Reality in NJ / Bergen County |
|---|---|
| Housing Costs | ~$800K home value vs. ~$124K income |
| Costs Rising | Property taxes highest in U.S.; insurance and utilities spiking |
| Savings Shortfall | 37% can’t cover $400; fewer than 50% have 3 months saved |
| Debt Collection | ~15% in collections; credit and student delinquencies rising |
| Credit Card Debt | $7,528 average, $10,767 household average, record highs |
| HEI Risk | Could owe 15–20% of future sale price for a small upfront draw |
Ready to Unlock Your Home’s Equity Without the Stress?
Feeling house rich but money poor in New Jersey? You’re not alone—many Bergen County homeowners face high costs, thin savings, and mounting debt.
👉 New Jersey House Partners can help. We offer:
- Full-market listings to secure top sale value
- Fast cash offer options
- Smart downsizing and relocation support
- A safer alternative to risky equity-selling products
📞 Call 201-214-1349 or visit NJHousePartners.com for a no-obligation consultation today.
