Homeowners Ages 35-44 Struggle Financially—Here Are the States Where Being House-Rich and Cash-Poor Hits Hardest

More than one in five homeowners ages 35–44 with a mortgage are cost-burdened—that is, they spend at least 30% of their household income on housing costs. That’s according to a new Investopedia analysis of the most recent Census data.

The squeeze on these homeowners hits far harder in coastal states than in others. In Hawaii, 41% of homeowners in this age group with mortgages are cost-burdened. In California and Florida, it’s about 33%.

Below, we break down the numbers state by state so you can see how 35-44-year-old homeowners in your area compare—and whether you’re paying more than your neighbors are.

Owning Beats Renting—Except Where It Doesn’t

Buying a home is often cast as the great financial divider: the point where your housing dollar starts building equity instead of disappearing into a landlord’s pocket. Investopedia‘s analysis of U.S. Census data bears this out: almost half (48%) of renters ages 35–44 are cost-burdened, compared with 22% of owners.

But the size of that gap varies by state, and in a few places, it nearly vanishes. In North Dakota, just 8 percentage points separate the owner and renter burden rates. In Florida, it’s 32 points. (Renters are more cost-burdened.)

Being ‘House-Rich, Cash-Poor’ Is Common Nationwide

“House-rich, cash-poor” is a phrase meant to capture a kind of financial vertigo: your net worth says you’re doing fine, but your bank account at the end of the month says otherwise.

In Hawaii, the average home owned by someone in that age group is worth about $1.05 million, which is 5.6 times the average household income. In California, Utah and Wyoming, the ratio is more than four times the average household income.

In lower-cost states, average home values run just two to three times the average household income and monthly housing costs stay well under $2,000. But what separates affordable states from unaffordable ones isn’t the price tag alone—it’s how much of a paycheck housing consumes.

A homeowner in West Virginia, where average monthly housing costs run $1,576, typically spends a far smaller share of their income on their home than a homeowner in California who pays an average of $3,904 per month. That’s because West Virginia ranks 48th in housing costs as a percentage of income, while California ranks second.

A separate analysis from the National Institute on Retirement Security illustrates just how much wealth-building depends on the value of Americans’ homes. Workers ages 35–44 have saved just 4% of what experts recommend savers have in their 401(k)s and IRAs. But count the house, and they’re at 41%. The home isn’t just where they live—it’s where most of their retirement savings are.

Where the Money Actually Goes

Insurance premiums vary across the nation. In Hawaii, high housing costs are almost entirely mortgage-driven: insurance costs are about 8% of the size of mortgage payments.

For Florida homeowners, though, much of what they pay each month doesn’t build equity. On average, their mortgage payments cost a relatively modest $979 per month—but their average property insurance costs $1,690 a year, among the highest in the country. That’s the hurricane premium.

Louisiana follows the same pattern. Mortgage payments average $726 a month—well below the national average—but annual insurance costs hit $1,705, the highest of any state in this analysis. Oklahoma ($1,545) and Kansas ($1,411) also stand out, with tornado-corridor risk driving up premiums even on lower-cost homes.