Equity, Stress, and the Silent Struggles of Today's Homeowners

[David Litt]

I’ve been thinking a lot about the disconnect between rising home equity and rising financial stress.

It seems like everywhere you turn, home values are up—and yet, more and more people are quietly falling behind. Whether it’s increased property taxes, unexpected repairs, or just the growing cost of living, some homeowners are sitting on six figures of equity… but still feel like they’re drowning.

I’m curious—what are you all seeing out there? Are homeowners tapping into that equity with HELOCs or refinancing? Or are they letting it sit while financial stress creeps in?

Would love to hear what agents, lenders, investors, and fellow homeowners are noticing on the ground. Are people opening up about these issues, or staying silent until it’s too late?

Let’s talk real life—not just numbers.

[Jay Hinrichs]

Quote from @Alan Asriants:

Quote from @Jay Hinrichs:

Quote from @Mohammed Rahman:

This is such a real conversation because you’re spot on—there’s this weird illusion of wealth when you own a home with a ton of equity, but the day-to-day cash flow tells a completely different story. 

I’m seeing a lot of people who could tap into that equity, but they’re hesitant. Rates aren’t as attractive for cash-out refis like they were a couple of years ago, and HELOCs, while flexible, still feel like taking on more debt when people are already stretched thin with higher expenses everywhere else.

What’s interesting is that some homeowners are choosing to “ride it out,” hoping things will stabilize, but that can backfire fast when a big repair hits or credit card balances quietly build up. 

On the flip side, others are starting to quietly explore HELOCs—not because they want to splurge, but as a safety net. They’re not drawing on them yet, but they want that lifeline ready.

But overall, people aren’t being vocal about their financial stress until it gets really bad. There’s still this mindset of “I should be fine, I own a home,” even when the monthly numbers aren’t adding up. It’s definitely a conversation we need to normalize—equity doesn’t pay the grocery bills.

Curious to see how others are seeing this play out too.

to me its finance 101 anyone having to use a heloc or CC debt to live is living far above their means and needs to look at their lifestyle and cut back there.. Many would do well to listen and repeat what our grandparents / or you younger BP members Great Grandparents did who live through the great depression.. Get out of debt as soon as possible and NO CC debt that can not be paid off monthly..  All the most successful clients I have met or done bizz with generally fall into this category  Work their jobs and careers and live within their means.  And pay cash for everything except their residence and do NOT refi till they die they payoff their real estate.  I know its counter intuitive on BP and probably blasphem.  But for me give me 3 to 5 paid off assets compared to 20 with max debt. .

 Yep, families making 250k+ a year cannot afford to live and are scrapping by paycheck to paycheck. Heard already a couple of stories of families selling their home just o get out of CC debt. People's spending habits are insane. I consider myself a frugal person and cannot comprehend how quickly the money leaves the door, I can't imagine what that is like with a spending habit. 

CC debt are the gates of hell financially. 1 dollar in is 2 dollars to get out. 

I also think that people are spending wild amounts of money on car payments. With social media its really easy for todays common person to buy things online, think they need certian things etc.

Developing a frugal mindset and limiting spending and bad debt is the only way. 

200k a year is not much anymore...

Yup only use CC if you can pay them off monthly and the points benefit you.. spending more each month than you bring home will catch up to a person.