U.S. Homeowners Express Rising Financial Anxieties, According to FAR Survey
Finance of America Reverse LLC released its 2023 Home Equity Punch List, revealing that 79% of homeowners remain uneasy about the U.S. economy, with concerns about unforeseen healthcare expenses and discretionary spending. Gender differences were also noted. Home equity loans were only sought slightly more, with a lack of product knowledge contributing to financial anxiety.
On August 22, 2023, in San Diego, Finance of America Reverse LLC (FAR), which is a key participant in the reverse mortgage business and a subsidiary of the Finance of America Companies (NYSE: FOA), released its 2023 Home Equity Punch List. This study investigates the opinions of homeowners in the United States on their home's equity as well as their feelings towards long-term financial planning and retirement.
The study highlights that nearly 79% of homeowners remain uneasy about the U.S. economy, mirroring sentiments from 2022. Concerns about unforeseen healthcare expenses during retirement have risen, with 61% of homeowners now anxious, up from 48% last year. Furthermore, the proportion of homeowners worried about discretionary spending has jumped from 32% in 2022 to 41% this year.
The poll also revealed gender differences in terms of worries over one's financial situation. Comparatively, just 75% of males were worried about the economy, whilst 82% of women reported feeling anxious about it. In addition, compared to males, 54% of women expressed concern over their ability to retire according to their own terms.
In spite of the heightened financial worries, the propensity among homeowners to seek home equity loans as a solution experienced only a minor increase, going from 28% in 2022 to 32% in 2023. According to the poll, a lack of product knowledge and unfamiliarity with financial goods can be contributing causes to the prevalent financial anxiety that people are experiencing.
Commenting on the findings, FOA's Chief Marketing Officer, Chris Moschner, emphasized the persistent gap in understanding the benefits of equity-based solutions. He noted, "The economic concerns among homeowners persist... There's a consistent lack of clarity, with many only vaguely recognizing the merits of home equity solutions and reverse mortgages."
The survey, conducted by The Harris Poll for FAR between May 15 and May 26, 2023, involved U.S. homeowners aged 18 and above from 2011. Committed to its mission, FAR continues to empower individuals with tools to achieve financial freedom in their retirement years.
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