The Magpies are languishing in 12th place in the Premier League ahead of Saturday's clash with Leicester.
That is a far cry from the top four place they had targeted after competing in the Champions League last season.
When the Saudi takeover at St James' Park was completed to much fanfare in 2021, Newcastle had hoped to establish themselves as one of the world's top clubs.
But Premier League profit and sustainability rules have hampered the Saudis' efforts to build on the fourth-place finish Newcastle achieved two season ago.
And with little sign of significant spending on new signings in January, Howe knows it could be harder to keep his players happy and attract fresh talent.
"Players are very astute human beings. I always say players feel everything at a football club," he told reporters on Friday.
"They are the most perceptive people because they are on the front line. They are the ones delivering for us, so whatever is going on at a football match, they're the ones absorbing it.
"Naturally, PSR has had an effect on the club and we haven't been able to strive and reach as quickly as we wanted to initially. That has been halted somewhat in various ways.
"Of course they have felt that and been aware of that. The challenge for me is for that not to affect performances and mood and belonging to the club."
Newcastle spent £400 million ($506 million) on new signings during the first four transfer windows under their new owners but have not made a major signing since.
Howe, who replaced Steve Bruce at Newcastle in 2021, finds himself under pressure after last weekend's 4-2 defeat at Brentford, with his side having won just two of their last 11 league games.
"The best players we have, they're like gold dust, and I've said that many times. They're difficult to find, you're not going to pick them up off the street," Howe said.
"When you have them, you've got to cherish them and really care for them, and try to make the environment as strong as you can so they want to stay as part of that."
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