These states are struggling with housing payments more than others, new study finds

Rent is due: Study reveals where Americans are falling behind on housing payments

• Mississippi ranks highest in housing payment difficulties, with nearly 15% of households behind. Renters face the biggest challenge, as over 21% are late on payments, highlighting the economic challenges faced by the state.
• Across the U.S., renters are disproportionately affected by housing affordability issues. In states like Illinois, nearly a quarter of renters are behind on payments, even as mortgage delinquency rates remain comparatively low.
• While many states struggle, Montana and Idaho stand out with delinquency rates below 4%. These states showcase the benefits of more stable economies and affordable housing markets.
• The data highlights a troubling national pattern: as rents and home prices rise, more households are falling behind on payments. Renters are particularly vulnerable, making it clear that solutions must address the unique challenges they face.

Housing affordability is reaching crisis levels in many parts of the United States, and a growing number of Americans are finding it hard to keep up with their housing costs. Whether it’s soaring rents or overdue mortgages, the struggle to stay current on payments is affecting millions of households nationwide.

According to a recent study by Deeds.com, an online platform that provides real estate deed forms and information, over 6.6 million households are behind on their mortgage payments, while 9.4 million renters are struggling to pay rent. The study ranked states based on the percentage of households falling behind, revealing stark differences across the country.

Mississippi tops the list with nearly 15% of its households behind on housing payments. This alarming figure combines 8.56% of homeowners who are late on mortgage payments and 21.08% of renters struggling to pay rent. The state’s economic challenges and high poverty rate are likely contributors to its high housing delinquency rates.

Illinois ranks second, but its housing woes are primarily driven by renters. While just 3.33% of homeowners are behind on mortgages, a relatively low figure, a staggering 24.51% of renters are delinquent. This makes Illinois the state with the highest rent delinquency rate in the nation, shining a light on the affordability challenges faced by tenants.

Delaware comes in third with an overall delinquency rate of 13.81%. Its figures are driven by 5.75% of homeowners and 21.87% of renters behind on payments. Wyoming, despite a low mortgage delinquency rate of 3.19%, sees its average rise to 11.89% due to 20.59% of renters falling behind.

The bigger picture: renters face more challenges nationwide

The data reveals a consistent trend: renters are struggling far more than homeowners. In many states, rent delinquency rates outpace mortgage delinquency rates by a wide margin. 

For example, in Texas, 4.5% of homeowners are late on payments compared to 18.58% of renters. Similarly, New Jersey’s figures show 5.57% of homeowners behind on mortgages, dwarfed by 17.7% of renters struggling to pay rent.

Bright spots: Montana and Idaho show stability

At the other end of the spectrum, Montana and Idaho boast the lowest delinquency rates. Both states have fewer than 4% of households behind on housing payments, reflecting stronger economic stability and more affordable housing markets.

Other states ranking high for housing struggles include New Jersey, Texas, and Georgia, with delinquency rates averaging around 11-12%. Meanwhile, New York rounds out the top ten at 10.74%, thanks to a relatively high 5.98% mortgage delinquency rate offset by a more modest 15.5% rent delinquency.

S. Shepherd, a real estate expert from Deeds.com, commented on the findings:

“As rents and home prices keep climbing, more Americans are falling behind on payments, and renters are feeling the squeeze the most. 

“It’s a serious issue that policymakers and housing advocates need to tackle, focusing on ways to ease the financial strain renters are facing.”

Full list of states with the most and least residents late on housing payments: 

Ranking	State	% Late on Mortgages	% Late on Rent	Average % Late on Housing Payments
1	Mississippi	8.56	21.08	14.82
2	Illinois	3.33	24.51	13.92
3	Delaware	5.75	21.87	13.81
4	Wyoming	3.19	20.59	11.89
5	New Jersey	5.57	17.70	11.63
6	Texas	4.50	18.58	11.54
7	Georgia	5.70	17.05	11.37
8	Tennessee	3.58	18.55	11.07
9	Alabama	3.94	17.60	10.77
10	New York	5.98	15.50	10.74
11	Rhode Island	5.96	14.91	10.44
12	Virginia	6.55	14.24	10.40
13	Maine	3.97	16.81	10.39
14	Florida	5.49	15.23	10.36
15	Indiana	4.60	16.10	10.35
16	Maryland	4.81	15.87	10.34
17	South Dakota	1.78	16.77	9.28
18	Colorado	3.73	14.31	9.02
19	Hawaii	3.47	14.12	8.79
20	Alaska	3.29	13.79	8.54
21	California	3.24	13.63	8.43
22	Pennsylvania	7.11	9.50	8.30
23	Nevada	2.58	13.82	8.20
24	Connecticut	2.83	12.76	7.79
25	Massachusetts	2.71	12.55	7.63
26	Vermont	3.30	11.93	7.61
27	Utah	4.69	10.49	7.59
28	Arkansas	4.62	10.50	7.56
29	South Carolina	3.98	11.06	7.52
30	West Virginia	2.85	11.93	7.39
31	Oklahoma	3.22	11.32	7.27
32	New Mexico	4.65	9.73	7.19
33	Ohio	3.84	9.80	6.82
34	Nebraska	3.10	10.39	6.74
35	Oregon	1.95	11.23	6.59
36	Louisiana	4.75	8.17	6.46
37	North Dakota	1.93	10.59	6.26
38	Iowa	2.37	10.12	6.24
39	Minnesota	2.82	9.32	6.07
40	New Hampshire	3.14	8.99	6.07
41	Arizona	4.02	8.00	6.01
42	Michigan	3.45	7.30	5.37
43	Kansas	1.69	9.05	5.37
44	Washington	1.76	8.89	5.33
45	North Carolina	4.06	6.39	5.22
46	Kentucky	2.05	8.27	5.16
47	Missouri	2.24	7.10	4.67
48	Wisconsin	4.93	4.31	4.62
49	Idaho	2.44	4.77	3.61
50	Montana	2.32	3.80	3.06

Methodology

This study used data from the U.S. Census Bureau’s Household Pulse Survey, focusing on two key metrics: the percentage of households not caught up on mortgage payments and the percentage of households not caught up on rent payments. The average delinquency rate for each state was calculated by combining these figures.