A new report from the Urban Institute reveals growing rent payment difficulties among renters across all income brackets in the United States, marking a significant shift in housing affordability challenges. Research data shows that approximately 20% of middle-income renters reported being unable to afford their full rent payment at some point during 2025, representing a substantial increase from the previous year when roughly 14% faced similar difficulties. This trend reflects broader economic pressures and rising costs for essential services, with more than 20% of renters also struggling to pay for utilities.
The findings highlight a distinction between renters and homeowners, as mortgage payment affordability among homeowners has remained stable over the past seven years. Meanwhile, rental delinquency rates have been climbing since 2022. Lower-income renters experienced higher rates of difficulty, with nearly 28% unable to pay rent in 2025, compared to around 24% in 2019. Notably, even high-earning renters reported increased challenges, with approximately 7% unable to pay rent at least once during the year, up from 5% the previous year.
The Urban Institute defines middle-income renters as single-person households earning between $31,300 and $62,600 annually, or families of three with incomes between $53,300 and $106,600. The research is based on responses from over 10,000 adults participating in the Institute’s annual Well-Being and Basic Needs Survey. Geographic analysis indicates that the South and Northeast experienced the most pronounced increases in rent defaults during the period studied.
Researchers expressed concern about potential implications of these trends, noting that state eviction laws vary considerably and that even a single missed rent payment in some jurisdictions could result in housing loss. Additional concerns center on proposed federal policy changes that could restrict access to housing assistance programs through time limits and work requirements, potentially affecting vulnerable populations already struggling with housing costs.
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