House Rich, Cash Poor': Many Americans Have Valuable Homes But Not Enough Savings
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Home values have soared, making many Americans "house rich" but without enough retirement savings or cash ("cash poor"). This could trap them if rates stay high.
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Median household net worth jumped 37% from 2019-2022, mostly due to higher home values. Retirement accounts grew less.
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Being "house rich, cash poor" means having home equity but struggling to pay bills. It hits people of all ages.
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Causes include job changes, inflation, medical costs. Refinancing home pulls out cash but can be costly.
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Advisors urge clients to build assets beyond home equity to avoid "eating cat food" despite living in a high-value house.