Survey Housing values continue to batter homeowners’ wealth

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New Jerseyans who are renters feel better off financially than homeowners, according to the latest PublicMind quarterly consumer survey by Fairleigh Dickinson University’s Silberman College of Business.

New Jerseyans who are renters feel better off financially than homeowners, according to the latest PublicMind quarterly consumer survey by Fairleigh Dickinson University’s Silberman College of Business.

People who own their homes were more likely than renters to say they are worse off financially today than a year ago, 53 percent of homeowners versus 42 percent of renters. Only 19 percent of homeowners said they are better off now than a year ago, compared with 35 percent of renters.

“If your house is a key component of your wealth, and it goes down in value with no sign of improvement, you will have a bleak view of your financial future,” said Sorin Tuluca, professor of finance at FDU.

The survey found nearly one in five homeowners have a mortgage worth more than their home, up 5 percentage points since April.

“Many homeowners used the equity in their house as an ATM, and this is no longer possible,” Tuluca said. “Renters, on the other hand, relied mainly on their income, and thus their budget was more independent of real estate prices.”

Overall, a 51 percent majority said they are worse off financially than a year ago, up six points since the last survey in April. About a quarter said they are in about the same financial shape as a year ago, and 23 percent said they are better off.

Looking ahead, 38 percent said their financial well-being will improve over the next year, while 49 percent expect to be the same or worse off. And about 37 percent of workers say they are somewhat or very concerned about losing their job in the next 12 months.

The random survey of 627 adults was conducted between Sept. 19 and 25.