New Unlock Research Finds Homeowners Squeezed from Every Direction as Inflation Climbs to Three-Year High - and it's Worst for Working Parents

The report from economist Skylar Olsen, Ph.D., finds essential costs consuming record shares of household income, while home equity remains locked behind a refinancing wall.

TEMPE, Ariz., June 23, 2026 /PRNewswire/ -- Unlock today released new research showing that American homeowners are facing an affordability crisis unlike anything in recent memory, with the latest federal inflation data only compounding it.

New federal data shows annual inflation reached 4.2% in May, its highest level since April 2023 and surpassing wage growth for the second month in a row. Unlock's research tracks what that pressure looks like at the household level, and specifically for those who strategically refinanced during the pandemic. Rising costs for food, gas, healthcare, childcare, property insurance and taxes are consuming an ever-larger share of income, while trillions of dollars in equity sit tied up in homes.

The report, authored for Unlock by economist Skylar Olsen, Ph.D., finds that non-mortgage homeownership costs alone now claim nearly 10% of median household income nationally, and more than 14% in the hardest-hit states, including Florida, New Jersey, New York and California. That's in part due to property insurance costs, which have surged 74.8% from 2020 and continued to grow 6.2% over the past year. Meanwhile, spending on non-housing, everyday essentials – food, gas and healthcare – is up 31% since 2020. One in every four dollars of income now goes to just those three categories.

For working parents, the cash flow crisis is even more urgent. A household with two children under age three in childcare is spending more than half of its income on food, gas, healthcare and childcare combined, before accounting for mortgage payments, taxes or insurance.

"American homeowners have built remarkable wealth on paper. The typical homeowner today holds more than $274,000 in home equity, but that wealth has become increasingly difficult to access," said Olsen. "Life is getting more expensive from every direction at once, and the traditional relief valve of tapping home equity through a cash-out refinance is no longer a realistic option for millions of families."

The reason: the majority of homeowners are locked into historically low mortgage rates secured between 2020 and 2022. Accessing $50,000 in equity through a cash-out refinance today could double the monthly mortgage payment for most of those homeowners, adding hundreds of dollars a month when household budgets are already stretched thin. The result is what the report calls an "equity trap," a situation where homeowners are asset-rich, but cash-constrained, sitting on substantial wealth with few affordable ways to reach it.

"Dr. Olsen's research validates the building financial squeeze that we've all felt or witnessed as American homeowners the last several years," said Michel Micheletti, the chief marketing and communications officer at Unlock. "And the numbers are staggering."

Key findings include:

• U.S. home prices are up nearly 47% since 2020, giving the typical homeowner more than $274,000 in equity.
• Spending on non-housing essentials – gas, food, and healthcare – is up 31% from 2020. Today, $1 of every $4 of income goes to those three categories alone.
• For homeowners in states like Montana, Alaska and Nevada, total essential spending burdens exceed 80% of household income.
• A cash-out refinance today would add more than $477 per month for homeowners who locked in sub-3% rates, more than doubling their mortgage payments.
• Nationally, the total essential spending burden for working-parent households stands at 66.8% of income as of April 2026, up 3.5 percentage points from 2020.
• Gasoline spending is up 103% since 2020, with the bulk of the most recent surge coming since February, when military action against Iran began driving energy prices higher. That alone is reshaping household budgets.

The full report and methodology are available here.

Home Equity Agreements are offered by Unlock Home Equity Solutions Inc. (NMLS# 2657081) in certain states: www.nmlsconsumeraccess.org. Visit Unlock.com/licenses for more information.

About Unlock

Founded in 2020, Unlock Technologies is a Tempe, Arizona-based financial technology company providing products and services that help consumers solve financial challenges and improve their financial health. The company's flagship product is its home equity agreement, a financing option for homeowners who want to access the equity they have built without adding monthly payments, or having to refinance or sell their home.

Media contact: Allison Ferré, Communications and Public Relations Director, [email protected]

SOURCE Unlock Technologies