House Poor Isn’t Just for Homeowners: The Opportunity Costs They Don’t Talk About
- Miranda Griffin
- May 17
- 3 min read
Updated: May 28
“House poor is not just in the numbers; it’s a feeling.”– Ramit Sethi
I’ve been sitting with that quote since I finished watching Ramit’s video The Housing Crisis: America’s Biggest Wealth Killer.
While I agree with him—it is a feeling—I also think we need to dig deeper into whose feelings actually get counted.
Because if you’re a renter, especially one without savings, equity, or a financial Plan B, that feeling hits you a lot earlier… and lasts a hell of a lot longer.
Most Financial Advice is Built for Homeowners
Ramit’s guidance in this video is solid:
Don’t let housing costs eat more than 28% of your gross income
Watch for phantom costs that sneak in post-purchase
If needed, sell the house and reduce your housing burden
But here’s the gap: Most renters don’t have the flexibility, leverage, or liquidity that homeowners do and yet—we experience the same (if not greater) levels of financial stress.
Let’s break this down through the lens of the case studies Ramit shared in his video.
Case Study 1
Income: $45K
Mortgage: $1,029/month → ~27% of income
Total housing cost with phantom costs: ~40%
Solution: Took in roommates, drove for Uber, got raises. She did what she needed to survive—and eventually thrive. But even she admitted:
“Once I got rid of the roommates, my credit card debt skyrocketed again.”
She was constantly trading peace for survival. That’s not wealth. That’s burnout on a timer.
Case Study 2
Household income: $400K
Home: $1.15M in Nashville
Monthly payment: $4,300
Complications: Burnout, job loss, lawsuit with previous homeowner
How’d they “fix it”? They had options:
Rented out part of their home
Reinvested in her business
Pulled $200,000 from a brokerage account and recast their mortgage
Great use of resources… but what if you don’t have those resources?
And That’s Where Renters Come In
Here’s my situation:
I rent a market-rate apartment in DFW, Texas area.
I’m self-employed and running a business while in graduate school
I don’t have a financial safety net
I’m on a family car insurance plan
And I don’t have health insurance (because, yep—that’s a whole other post)
I feel just as house poor as anyone with a mortgage—if not more—because:
I can’t refinance
I can’t pull equity
I can’t write off housing expenses
And I don’t have legal leverage over my landlord
What Are the Non-Financial Costs of Being House Poor?
Here’s the part nobody talks about. When housing eats your budget, it doesn’t just cost you money. It costs:
Your time
Your energy
Your creativity
Your ability to say yes to new opportunities
Your ability to rest, heal, or even think clearly
That’s the real cost of being house poor—and it applies to renters and owners alike.
Ramit’s Three Solutions (And How They Translate for Renters)
1. Cut Expenses
Sure. But what if you’ve already cut everything?
No car payment? Check.
Cheap insurance? Check.
Plant-based and rarely eat out? Check.
I can’t coupon my way to financial freedom.
2. Make More Money
Yes. This is where I’m focused—and where renters might actually have a tiny advantage: flexibility.
I’m building digital products.
Running a business.
Pivoting hard.
Building a business while being financially stretched is no joke. It takes serious discipline, belief, and a few tears.
3. Sell the House—or Break the Lease
Homeowners rarely sell. Renters rarely leave.
Why?
Lease fees
Deposits
Moving costs
No guarantee of better rent elsewhere
I just gave notice using the reletting clause in my lease, and I’ll still owe $1,270 plus rent until it gets re-leased. That’s the “freedom” we’re supposedly buying with rent.
The Bottom Line: It’s About Options
If your housing costs are consuming your options, you’re house poor.
It doesn’t matter if you rent or own. It matters whether you have margin—financial, emotional, or logistical—to live a life you actually want.
And if you don’t?
It’s time to start building one that gives you options again.
I’m leaving Texas in a few weeks with $10 in my pocket, a dog named Lucas in the passenger seat, and a business that’s slowly becoming something real.
And you better believe I’ll be writing about it every step of the way.
(Also—for the record—the family plan is for car insurance. I don’t even have health insurance right now because that’s a whole other blog post. Stay tuned.)
💥 Want to Follow Along or Support the Journey?
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Let’s build something real even when it starts with $10 and a dog in the front seat.
