Research from the Urban Institute has identified a widening affordability crisis affecting renters across all income brackets in the United States. The organization’s survey found that approximately one in five middle-income renters reported being unable to pay their full rent at least once during 2025, representing a substantial increase from the prior year when about 14% faced similar challenges. This trend signals a notable shift in housing affordability struggles that have historically concentrated among lower-income households.
The affordability pressures facing renters stem from a combination of mounting economic challenges and escalating costs for basic necessities. More than 20% of renters also reported difficulties paying for utilities and fuel during the same period. The research shows that homeowners have maintained relatively stable mortgage payment capacity over the past seven years, whereas renters’ ability to meet housing costs has deteriorated consistently since 2022.
The income brackets tracked in the research reveal the breadth of the challenge. Nearly 28% of lower-income renters could not afford housing payments during 2025, while middle-income renters—defined as those earning between $31,300 and $62,600 annually for individuals or $53,300 and $106,600 for families of three—experienced particularly sharp increases in financial hardship at nearly 22%. Even high-earning renters reported an uptick, with approximately 7% unable to pay rent at least once, up 2% from the prior year.
Geographic variation exists in the severity of rent defaults, with the South and Northeast experiencing the most pronounced increases. Researchers express concern that mounting rental payment defaults could foreshadow increased homelessness, particularly as state eviction laws vary in their provisions regarding missed payments. Housing advocates have also raised concerns about proposed federal policy changes that could restrict access to rental assistance programs through time limits and work requirements, potentially limiting aid availability as affordability pressures intensify.
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