March 26 (Bloomberg) -- Miami-area homeowner Richard Welch is spending $70 less on groceries a week after his house lost $145,000 in value. Rita Roland cut off 11 inches of hair to save on salon trips, and Victor Parris stopped drinking his favorite brands of dark ale.
``Absolutely, I feel less wealthy than I did in 2006,'' said Welch, 48, a corporate tax auditor. He said he and his wife, Barbara, are slashing spending by 30 percent, including canceling their cable television.
The residents of Melrose Cove, a Miramar, Florida, subdivision 23 miles (37 kilometers) north of Miami, are cutting back after regional house prices tied with Las Vegas in dropping more than any other U.S. metropolitan area in January. They're giving up shopping trips, restaurant dinners, movies and vacations, demonstrating how the housing market is damaging consumer spending and sentiment.
The Melrose Cove homeowners' association expects to bring in $20,000 less in dues this year as residents struggle to pay bills. The group plans to reduce spending on landscaping, painting and other improvements by $41,000, said Welch, the association's president.
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House as Bank Account
``I looked at my house as a bank account that was going to accrue interest on a daily, monthly, annual basis,'' she said. ``I'm looking at not gaining money on this stock that I call a house, and may actually lose money.''
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