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Home arrow Market Research Findings arrow Housing/Property arrow Twenty-Seven Million People With Mortgages Believe They Owe More Than Their Homes Are Worth
Twenty-Seven Million People With Mortgages Believe They Owe More Than Their Homes Are Worth PDF Print E-mail
Written by Harris Interactive   
26 Apr 2010
Two-Thirds of All Adults Are Concerned That They Will Not Have Enough Money to Cover All Their Costs and Expenses

A new Harris Poll provides some unpleasant numbers about the housing crisis and the collapse of the house price bubble.

Fully 24% of people with mortgages believe they owe more on their mortgages than their homes are worth.

One in nine homeowners (11%) with mortgages report having "a great deal of difficulty" in paying off their mortgage. Another 18% are having "some difficulty."

This comes at a time when two-thirds of all adults (65%) are concerned that their families' incomes "will not be enough to cover all their costs and expenses this year."

These are some of the results of The Harris Poll of 2,320 adults surveyed online between March 1 and 8, 2010 by Harris Interactive.

Other interesting findings include:


* Over two-thirds (69%) of adults who are homeowners have a mortgage that they need to pay off.
    
* People whose homes are believed to be worth less than the money owed on their mortgages are common across all income groups. Fully 26% of adults with mortgages who have household incomes of $75,000 or more believe their homes are worth less than the balance of their mortgages.
    
* Almost a third (29%) of adults with mortgages are having some difficulty (18%) or a great deal of difficulty (11%) paying off their mortgages.

Among those who believe their homes are worth less than their outstanding mortgages, fully 26% are having a great deal of difficulty and another 23% are having some difficulty paying them off.

* The two-thirds (65%) of all adults who are concerned about having enough income to cover all their costs and expenses include 26% who are very concerned and 39% who are somewhat concerned.
    
* Among those who believe that their homes are worth less than their mortgages, fully 42% are very concerned and another 38% are somewhat concerned about not having enough income to cover their costs.
    
* Unsurprisingly, income levels make a big difference. Concerns about not having enough income to cover costs and expenses is much higher among people with household incomes below $35,000 (40% are very concerned) than among those with incomes over $75,000 (16% are very concerned).

So what?
These findings underline the very large number of people whose homes are worth less than their outstanding mortgages and the even larger numbers who are worried about covering their costs and expenses generally.

If the percentages are converted into numbers, approximately 27 million adults believe they are "under water" – that their houses are worth less than their mortgage debts.

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Methodology
This Harris Poll was conducted online within the United States between March 1 and 8, 2010 among 2,320 adults (aged 18 and over).

Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents' propensity to be online.

All sample surveys and polls, whether or not they use probability sampling, are subject to multiple sources of error which are most often not possible to quantify or estimate, including sampling error, coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments.

Therefore, Harris Interactive avoids the words "margin of error" as they are misleading. All that can be calculated are different possible sampling errors with different probabilities for pure, unweighted, random samples with 100% response rates.

These are only theoretical because no published polls come close to this ideal.

Respondents for this survey were selected from among those who have agreed to participate in Harris Interactive surveys. The data have been weighted to reflect the composition of the adult population.

Because the sample is based on those who agreed to participate in the Harris Interactive panel, no estimates of theoretical sampling error can be calculated.

These statements conform to the principles of disclosure of the National Council on Public Polls.

The results of this Harris Poll may not be used in advertising, marketing or promotion without the prior written permission of Harris Interactive.

J37772
Q730, 740, 742, 744

The Harris Poll®#50, April 6, 2010
By Humphrey Taylor, Chairman, The Harris Poll, Harris Interactive

About Harris Interactive
For more information, please visit www.harrisinteractive.com .

6th April  2010

Last Updated ( 26 Apr 2010 )
 
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