A new report from the Urban Institute shows that 20% of Americans aged 18 to 64 were unable to pay their full rent on time at some point in 2025, marking the highest share since the institute began tracking this data in 2019. The survey, part of the Well-Being and Basic Needs Survey (WBNS), highlights a significant increase from 2024, when 14.3% of middle-income renters reported similar struggles.
Middle-income renters see largest jump in rent payment delays
The Urban Institute’s findings indicate that middle-income renters—defined as those earning between 200% and 400% of the federal poverty line—experienced the steepest rise in rent payment delays among all income groups. In 2025, 21.6% of middle-income renters reported being unable to pay rent on time, up from 14.3% in 2024. While lower-income renters remain the most likely to face housing affordability challenges, the sharp increase among middle-income households reflects broader economic pressures.
The report also notes that homeowners’ ability to afford mortgage payments has remained stable over the past seven years, with renters bearing the brunt of rising housing costs. Additionally, 27.8% of lower-income renters reported being unable to pay rent in 2025, up slightly from 26.4% in 2024.
Economic pressures squeeze middle-class budgets
Researchers attribute the growing affordability crisis to rising costs for housing, food, utilities, and transportation. A separate analysis from the Richmond Federal Reserve found that middle-income Americans are now more likely to hold multiple jobs than lower-income workers, with college-educated individuals comprising half of the multiple jobholder workforce. Middle-income consumer sentiment has also shifted, now aligning more closely with lower-income earners, suggesting similar financial pressures across groups.
The Urban Institute’s report underscores that housing represents the single largest monthly expense for most U.S. families, accounting for an average of 33.4% of total consumer expenditures, according to the Bureau of Labor Statistics. The shortage of affordable housing units has further exacerbated the crisis, with renters facing steep competition for available units.
Policy and long-term implications
Experts warn that the trend could have downward pressure on the poorest Americans, as middle-income households increasingly compete for rental units traditionally occupied by lower-income renters. The report’s authors emphasize that the affordability crisis is not limited to housing but extends to essential expenses like utilities and transportation, which have also seen significant cost increases.
The findings come amid broader concerns about the stability of the American middle class, with surveys indicating that many middle-income families feel financially strained. A July 2025 survey from Primerica found that 71% of middle-income Americans believed their income could not keep up with the cost of living, while 66% reported having little to no budget flexibility.
Key takeaways
- 20% of Americans aged 18 to 64 were unable to pay rent on time in 2025, the highest share since 2019.
- Middle-income renters saw the largest increase in rent payment delays, rising from 14.3% in 2024 to 21.6% in 2025.
- Lower-income renters remain the most vulnerable, with 27.8% reporting rent payment delays in 2025.
- Homeowners’ mortgage affordability has remained stable, while renters face growing challenges.
- Rising costs for housing, food, and utilities are cited as primary drivers of the affordability crisis.