Missed Housing Payments Are Piling up in Nearly Every State

In Maine, 12.3% of adults missed a rent or mortgage payment in June, or are likely to miss the following month’s payment. This is the smallest share of any state and well below the 25.3% of adults nationwide.

Continued ability to afford housing for a large percentage of Maine’s population throughout the coronavirus pandemic is likely attributable in part to the resilience of the state’s job market. As of June, Maine’s unemployment rate stood at 6.6%, lower than the vast majority of states and well below the 11.1% national rate.

Based on a U.S. Census Bureau survey conducted between July 2 and July 7, 2020, 12.6% of adults in Minnesota will likely soon miss a rental or mortgage payment, or already have — the second smallest share of any state.

Generally, states with lower rates of delinquent housing payments have higher incomes overall. In Minnesota, the typical household earns $70,315 a year. Meanwhile, the typical American household earns $61,937 annually.

Montana residents have been far less likely than most Americans to struggle to afford housing during the COVID-19 pandemic. Just 13.5% of adults in the state will likely soon miss a rental or mortgage payment, or already have, compared to over one-quarter of all American adults.

The average cost of rent in Montana is lower than it is in most other states and, partially as a result, housing accounts for a smaller than average share of most people’s income. Average gross rent is equal to just 8.6% of median income in Montana, a smaller share than in all but eight other states.

In Delaware, 14.3% of adults have not been able to afford rent during the COVID-19 pandemic, a smaller share than in most other states. The state has a low housing payment delinquency rate despite being home to a large percentage of residents for whom housing costs are a significant burden. Nearly 53% of all renters in the state spend 30% or more of their income on housing — one of the largest shares of any state.

Only 15.6% of adults in Massachusetts either cannot afford to pay for housing or have serious doubts over their continued ability to do so. Nationwide, more than one quarter of adults are struggling to afford housing during the pandemic.

Massachusetts residents are more likely to be able to afford housing despite the worst unemployment crisis in the country. The state’s 17.4% jobless rate is the highest of all states and well above the 11.1% national rate. Still, for those who are working, incomes are generally high. The typical Massachusetts household earns nearly $80,000 a year, far more than the national median income of $61,937.

New Hampshire is one of only six states where less than 16% of adults cannot afford to pay for housing during the COVID-19 pandemic. As is often the case in states where smaller shares of the population are struggling to afford their rent or mortgage, incomes are generally high in New Hampshire. The typical household in the state earns about $75,000 a year compared to the national median income of $61,937.

Wisconsin residents are far more likely than most Americans to be able to afford their rent or mortgage during the COVID-19 pandemic. Housing in general is more affordable in Wisconsin than it is in much of the rest of the country. Just 43.6% of renters in the state spend 30% or more of their income on housing, a lower housing-cost burden rate than in all but six other states. Nationwide, 49.7% of renters are housing-cost burdened.

Vermont is one of several New England states where residents are far more likely to be able to pay their rent or mortgage on time than the typical American adult during the pandemic. Just 16.4% of the state’s adult population has missed, or will likely soon miss, a rent or mortgage payment compared to over one-quarter of all American adults nationwide.

Vermonters were also less likely than most Americans to report lost income during the pandemic and the state’s 9.4% June unemployment rate is considerably lower than the 11.1% national rate.

Americans living in Kansas are less likely than average to spend a disproportionate amount of their annual income on housing. Additionally, the state’s June unemployment rate of 7.5% was well below the 11.1% national jobless rate.

With affordable housing and a relatively strong job market, Kansas residents are more likely than most Americans to continue to be able to make rent and mortgage payments during the pandemic — with just 16.5% of adults statewide unable to do so. Nationwide, 25.3% of adults either missed a housing payment, or will likely miss one soon during this time.

Colorado is one of many high-income states where Americans are relatively well-positioned to continue to make on-time rent or mortgage payments during the pandemic. The typical household in Colorado earns $71,953 a year, about $10,000 more than the typical American household nationwide.

Relatively high incomes likely put many Colorado residents in a better position to continue to pay bills, even during an economic downturn. Just 17.0% of adults in the state cannot afford to pay their rent or mortgage, far less than the 25.3% of adults nationwide.

Idaho has been largely spared the worst effects of the pandemic. There have been only 668 cases of the virus for every 100,000 people to date, well below the 1,054 per 100,000 concentration nationwide. Additionally, unemployment stands at just 5.6% in the state, nearly the lowest jobless rate in the country, and well below the 11.1% national rate.

Fewer job losses in Idaho mean fewer residents are struggling to pay their bills. Only 17.9% of adults in Idaho missed a rent or mortgage payment in June, or are likely to miss the following month’s payment, compared to 25.3% share of adults nationwide.

Oregon had one of the longest standing stay-at-home orders of any state, and while the virus was far better-contained there than it was in much of the rest of the country, a relatively large percentage of state residents felt the economic squeeze. Oregon is one of only 15 states where more than half of all adults are in households that have seen a reduction in employment income since mid-March.

Despite the financial hit many households took in recent weeks and months, Oregon residents are still less likely than most Americans to fail to pay their bills on time during the pandemic. Just 18.2% of adults in the state did not, or likely will not, pay their rent or mortgage on time as of late June, compared to more than one-quarter of adults nationwide.

Though cases of COVID-19 are spiking rapidly in Arizona, the state’s economy has weathered the pandemic better than most — so far. As of June, Arizona’s jobless rate of 10.0% is lower than most states and slightly better than the 11.1% national rate. A healthier job market means a larger share of the state’s population has a steady source of income to put towards bills.

Nationwide, 25.3% of adults have already missed, or will soon miss, a housing payment. Meanwhile, only 18.3% of adults in Arizona cannot afford to pay their rent or mortgage.

Housing is generally more affordable in Michigan than it is on average nationwide. The typical home in Michigan is worth 2.9 times the median income in the state. Nationwide, the typical home is worth 3.7 times the median annual household income. Additionally, only 48.3% of renters in the state are burdened by housing costs — spending at least 30% of their annual income on rent. Nationwide, 49.7% of renters are considered housing-cost burdened.

Likely due in part to the state’s relatively affordable housing market, a fairly small share of Michigan residents can no longer pay their bills, despite a surge in unemployment. Just 18.4% of adults in the state missed, or will soon miss, a rent or mortgage payment, compared to 25.3% nationwide.

Although it was the site of the first known case of the novel coronavirus in the United States, Washington has contained the diseases’s spread better than most states, as the number of cases per capita in the state to date is about half the national concentration. The economic fallout has also been relatively mild as unemployment in the state stands at 9.8%, considerably lower than the 11.1% national jobless rate.

With a smaller share of the labor force out of work, Washington residents are more likely to be able to continue paying their bills during the pandemic. Just 18.7% of adults in the state missed, or will likely soon miss, a rent or mortgage payment, compared to more than one-quarter of adults nationwide.

Nebraska’s economy has weathered the COVID-19 pandemic better than most states. The June unemployment rate of 6.7% is the seventh lowest among states and well below the 11.1% national rate. Housing is also relatively affordable in Nebraska as just 41.3% of renters in the state are unduly burdened by housing costs, compared to about half of all renters nationwide.

With a relatively strong job market and affordable housing, Nebraskans are less likely to be delinquent with rent or mortgage payments during the pandemic than most Americans. Just 18.8% of adults in the state have missed, or will soon miss, a monthly housing bill compared to 25.3% of American adults nationwide.

North Dakota is one of 17 states where fewer than one in every five adults are in a household that could not afford to pay their mortgage or rent this month, or were unlikely to be able to pay for housing next month.

This greater than average likelihood that North Dakota residents will be able to afford housing during the COVID-19 pandemic is partially attributable to several factors. First, workers in the state are less likely to be out of a job today than most U.S. workers, as the June jobless rate stands at 6.1%, well below the 11.1% national rate. Additionally, housing is also relatively affordable in North Dakota, as just 38.5% of renters are housing-cost burdened, compared to about half of all renters nationwide.

In Virginia, about one in every five adults cannot afford their rent or mortgage during the COVID-19 pandemic, a smaller share than the one in four adults struggling to pay for housing nationwide. Shutdowns related to the pandemic have not affected the pocketbooks of an especially large share of Virginians. Just 42.2% of all adults in the state are in households that have seen a reduction in employment income since mid-March, compared to about half of all adults nationwide.

Across the United States, 25.3% of adults report that they were unable to afford their June housing payments or likely unable to afford their July payments. In South Carolina, just 20.4% of adults report similar financial difficulties.

The relatively strong financial position many South Carolinians are in during the pandemic is likely due in part to the stronger than average labor market. The June unemployment rate in South Carolina stands at 8.7%, considerably lower than the 11.1% national jobless rate.

Alaska’s economy is heavily dependent on oil and gas extraction, an industry that has been hit especially hard during the COVID-19 pandemic. As of June, unemployment in the state stood at 12.4%, above the 11.1% national rate. Despite the higher than average unemployment rate, Alaskans are generally better able to continue to afford to make rent and mortgage payments during the pandemic. Only about one in every five adults missed, or will likely soon miss, a monthly housing payment, compared to about one in every four adults nationwide.

The stronger than average financial position many state residents are in could be due in part to the availability of relatively affordable housing in the state. Only 43.2% of renters in Alaska are housing-cost burdened, compared to about half of all renters nationwide.

As is the case in much of the Northeastern United States, residents of Rhode Island are better able to afford housing during the COVID-19 pandemic than most other Americans. About 122,000 people living in Rhode Island, or 20.8% of the adult population, cannot afford to make a monthly rent or mortgage payment, a smaller share than the 25.3% nationwide.

Rhode Island is one of many states where residents are less likely to miss a monthly housing payment during the pandemic where incomes are higher than average. The typical Rhode Island household earns $64,340 a year, slightly more than the national median household income of $61,937

In Missouri, 21.9% of the adult population was unable to afford a housing payment in June, or unlikely to be able to afford it in July. Meanwhile, nationwide 25.3% of adults cannot afford to pay their rent or mortgage.

The greater likelihood that Americans in Missouri are able to afford housing is likely tied to the state’s job market, which has kept a larger than typical share of the population employed during the pandemic. As of June, Missouri’s unemployment rate of 7.9% is considerably lower than the 11.1% national unemployment rate.

In Utah, adults are slightly more likely than the typical U.S. adult to have made their last month’s rent or mortgage payment, and have confidence that they will be able to do the same next month. This is likely due in part to the state’s relatively strong economy, which shed far fewer jobs than most states. Only 5.1% of Utah’s labor force was unemployed in June, less than half the 11.1% U.S. unemployment rate.

Oklahoma has one of the lower shares of adults who either missed their most recent housing payment or are not confident they will make their next one, at 23.4%. This is likely due in part to the fact that just 43.6% of renters are housing-cost burdened, well below the nationwide rate of 49.7%.

Oklahoma has largely avoided the worst of the economic impact from COVID-19. The state’s unemployment rate for June is 6.6%, lower than all but five other states and well below the national rate of 11.1%. While 49.9% of American adults live in a household in which someone lost employment income since March 13, only 43.3% of Oklahoma adults live in such homes.

Residents of North Carolina are better able to afford their homes than most Americans — the median cost of a house is 3.4 times the median household income, as compared to a 3.7 cost-to-income ratio nationwide.

The unemployment rate increased just 3.6 percentage points from June 2019 to June 2020, a lower increase than all but seven other states. North Carolina adults were less likely than American adults overall to live in households that either lost employment income since mid-March or expect employment income loss in the next four weeks.

In a tie with North Carolina, just under 24% of Illinois residents either missed their most recent housing payment or lack confidence they will make their next one, as compared to more than 25% of Americans in that situation.

Illinois has the seventh highest June 2020 unemployment rate, at 14.6%. Despite this, residents have a more optimistic outlook for their financial future than most. Just 24.1% predict someone in their household will lose employment income in the next four weeks, the third lowest share of any state. For comparison 34.9% of Americans expect a member of their household to lose employment income during that time.

Indiana’s job market has been greatly affected by the COVID-19 pandemic — 26.3% of the state’s labor force filed for unemployment between mid-March and July 11 and its June 2020 unemployment rate of 11.2% is the 14th highest among states. Yet Indiana adults are less likely to struggle to meet housing payments that the typical American. This is due in part to Indiana’s relatively low rent, at an average of $203 per month, and the state’s inexpensive homes, with a median value of $147,300. That home value is just 2.6 times the state’s median household income, the second lowest home value-to-income ratio of all states.

While 25.3% of American adults either missed their most recent housing payment or are not confident they will make the next one, only 24.0% of Indiana adults were in a similar financial bind.

Of all adults in Wyoming, 24.1% either missed their most recent housing payment or are not confident they will make their next one. The state has fared better than the U.S. overall in that respect, as more than a quarter of Americans are struggling to meet their housing obligations.

Wyoming has among the lowest rates of COVID-19 cases and deaths of any state, and its economy has not been as heavily impacted. It is one of just six states in which less than 20% of its labor force filed for unemployment from March 15 to July 11.

Iowa residents have largely been spared from the worst of the economic fallout from COVID-19. Just 39.0% of Iowa adults live in a household that has suffered a loss in employment income since March 13, the second lowest share among states and well below the 49.9% rate nationwide.

Iowa homeowners are better able to afford housing than those in any other state. Iowa’s median home value is just 2.5 times the state’s median household income of nearly $60,000 — the lowest ratio of all 50 states. Renters are also less likely to struggle to make housing payments, as just 42.4% of rental units are housing-cost burdened, a lower share than all but four other states. These conditions have likely contributed to the fact that Iowa residents are more likely to be able to make their monthly housing payments on time.

In Ohio, 24.3% of adults either missed their most recent housing payment or are not confident they will be able to make their next one, one percentage point lower than the rate nationwide.

Ohio residents are better able to afford their housing payments than those in almost every other state. The median home cost is just 2.7 times the state’s median household income — just two states have a lower ratio.

Half of all Pennsylvania adults live in a household in which someone lost employment income since March 13, just above the U.S. rate of 49.9%. The state also reported the ninth highest rate of unemployment in June, at 13.0%.

Yet 24.4% of adults either missed their most recent housing payment, or have little or no confidence that they can afford their next monthly payment, nearly a full percentage point lower than the U.S. rate. Pennsylvania residents are better able to afford their housing than those in most states. The state’s median home value is 3.1 times higher than the median household income, well below the 3.7 value-to-income ratio of the U.S. overall.

In Connecticut, 25.3% of adults either missed their rent or mortgage payment in June or are not confident they will be able to meet that obligation on time in July. This is exactly in line with the overall U.S. rate.

More than half of all adults in Connecticut, 52.8%, live in a household in which someone had a loss of employment income since the pandemic began, the seventh highest percentage of all states. Like many states, the incomes of renters are well below those of homeowners. Connecticut residents paying mortgages or home loans earn an average of $147,646, while renters have an average income of $58,388. Connecticut has the sixth highest share of renters who are housing-cost burdened, at 52.5%.

In California, 25.9% of adults cannot afford rent during the COVID-19 pandemic, closely in line with the average share nationwide. While late or missed rental or mortgage payments are about as common in California as they are nationwide, affordable housing is less common in the state than it is nationally. Nearly 55% of renters in California are burdened by housing costs, meaning they spend 30% or more of their income on rent, compared to just under half of all renters nationwide. Additionally, the typical home in California is worth 7.3 times the median income in the state. Nationwide, the typical home is worth just 3.7 times the median annual household income.

Kentucky’s job market, so far, has weathered the COVID-19 pandemic relatively unscathed. The state’s June unemployment rate of 4.3% is the lowest in the country. Despite avoiding the massive job losses other states suffered, 26.3% of adults — slightly higher than average — are struggling to pay their rent or mortgage during the pandemic.

Low incomes likely explain why some state residents are having difficulty making housing payments on time. Across Kentucky, 8.4% of households earn less than $10,000 a year, one of the largest shares of any state.

Nearly 27% of adults in Hawaii have not been able to afford their monthly housing payments during the COVID-19 pandemic. Hawaii’s economy, which depends largely on tourism, has been hit especially hard by lockdown measures. Unemployment stands at 13.9% in the state, well above the 11.1% national rate.

Even before the pandemic and the resulting economic fallout, many in Hawaii struggled to afford housing. Nearly 53% of renters in the state spend at least 30% of their income on housing, a higher housing-cost burden than in all but three other states.

In Maryland, 27.3% of adults either missed, or will likely soon miss, a rent or mortgage payment during the COVID-19 pandemic, a slightly larger share than the 25.3% of adults nationwide who did. Though incomes are high in Maryland, housing is also more expensive than average and, partially as a result, housing is less affordable on average in the state than it is nationwide.

Maryland had one of the strictest lockdowns of any state, and a relatively large share of residents were affected economically. Maryland is one of only 15 states where more than half of all adults are in households that have seen a reduction in employment income since mid-March.

New Jersey residents are more likely to be struggling to make monthly housing payments during the COVID-19 pandemic than Americans in most of the rest of the country. Though the state is one of the wealthiest in the country, with a median household income of nearly $82,000, housing costs are high. The average monthly rent in New Jersey is $420, more than in all but a half a dozen other states, and more than half of all renters in New Jersey are housing-cost burdened, spending at least 30% of their income on monthly rent.

New Jersey’s job market has also been hit hard in recent months. As of June, 16.6% of the labor force in the state was unemployed, the second highest jobless rate among states.

Nevada is one of only 13 states where more than 29% of adults will soon likely miss a rental or mortgage payment, or already have. Lockdowns resulting from the COVID-19 pandemic hit Nevada’s economy, which depends largely on tourism, especially hard. Unemployment stands at 15.0% in the state, well above the 11.1% national jobless rate.

Housing costs are particularly high for renters in Nevada to begin with. Over half of all renters in the state are housing-cost burdened — spending 30% or more of their income on housing.

More than 320,000 adults in New Mexico, or 29.5% of the adult population, either missed a rent or mortgage payment or will likely soon miss one during the pandemic. As is often the case in states where residents struggle to afford housing, incomes are generally low in New Mexico. The typical household in the state earns just $47,169 a year, well below the national median of $61,937. Additionally, about one in every 10 households in New Mexico lives on less than $10,000 a year, nearly the largest such share of any state.

Nearly 30% of adults in Texas are struggling to afford housing — either missing a rent or mortgage payment or likely to miss one soon. A larger than typical share of workers in Texas have been affected by the pandemic, as the state is one of only 15 where more than half of all adults are in households that have seen a reduction in employment income since mid-March.

West Virginia is one of only 10 states where more than 30% of adults either recently missed or will likely soon miss a rent or mortgage payment. The typical household in West Virginia earns just $44,097, the lowest median income of any state. Low incomes in West Virginia likely mean a larger share of residents are financially unprepared to weather an economic downturn.

Housing is relatively affordable in South Dakota. Only 41.0% of renters in the state are burdened by housing costs — spending 30% or more of their income on rent — and the typical home in the state is worth about three times the state’s median income. Nationwide, about half of all renters are housing-cost burdened and the typical home is worth 3.7 times the median household income.

Despite the state’s relative affordability, a larger than average share of adults in the state are struggling to pay for housing during the pandemic. Over 120,000 people, or 30.3% of the adult population, either already missed or expects to miss the next monthly rent or mortgage payment, a larger share than in all but nine other states.

Most of the states where the largest shares of residents are struggling to afford housing are in the South — and Florida is one of them. More than 3.6 million people in the state, or 30.8% of the adult population, either already missed or have little confidence they can make the next rent or mortgage payment.

Affordable housing rentals are in relatively short supply in Florida. Some 56.5% of renters in Florida are housing-cost burdened — meaning they spend 30% or more of their income on housing — the largest share of any state.

In Tennessee, 31.3% of adults cannot afford to make a monthly rent or mortgage payment during the COVID-19 pandemic, a larger share than in most other states. Lower income Americans may be less prepared to weather an economic downturn, like the one brought about by the coronavirus. In Tennessee, the typical household earns $52,375, nearly $10,000 less than the typical American household.

Nearly 8% of the 43.4 million Americans who either missed a rent or mortgage payment, or will likely soon miss one, during the pandemic live in New York State. New York has more cases of COVID-19 per capita than any other state in the country and efforts to slow the virus’s spread have taken an economic toll. Unemployment stands at 15.7% in New York, well above the 11.1% national jobless rate.

Affordable housing is less common in New York than it is nationally. Some 52.0% of renters in the state are burdened by housing costs, meaning they spend 30% or more of their income on rent, compared to just under half of all renters nationwide. Additionally, the typical home in New York is worth 4.8 times the median income in the state. Nationwide, the typical home is worth just 3.7 times the median annual household income.

One of only five states in which most households earn less than $48,000, Arkansas is one of the poorest states in the country. Lower income Americans typically spend a larger share of their income and, as a result, are less likely to be able to save and prepare for an economic downturn. During the current recession, a relatively large share of Arkansas residents are struggling to pay their bills. Across the state, more than 470,000 people — 32.3% of the adult population — cannot, or likely will not, be able to afford their monthly rent or mortgage payment, compared to 25.3% of adults nationwide.

In Georgia, 32.6% of adults cannot afford to make a monthly rent or mortgage payment during the COVID-19 pandemic, a larger share than in most other states. Georgia residents are also less likely than most Americans to be able to afford other essential items, including food. Over the last week, 13.3% of Georgia adults reported being in households where there was not enough to eat compared to 10.8% of American adults nationwide.

Alabama is one of the poorest states in the country. Of all households in the state, 9.1% live on less than $10,000 a year. For context, just 6.3% of households nationwide live on so little. Widespread poverty in Alabama partially explains why the state is one of only three nationwide where over one-third of adults missed a monthly rent or mortgage payment, or likely soon will, during the pandemic.

Despite how common financial hardship is in Alabama, state residents are optimistic about their economic future and the future of American business in general. The index of consumer sentiment stands at 99.7 points in Alabama, the highest of any state and well above the 87.4 point index score nationwide.

Along with nearby Alabama and Mississippi, Louisiana is one of only three states nationwide where more than one-third of adults have either missed a recent rent or mortgage payment, or likely will soon, during the COVID-19 pandemic. Widespread inability to afford basic necessities extends beyond housing in Louisiana. Nearly 18% of adults in the state are in households where there has not always been enough to eat in the last week.

Louisiana has one of the lowest median household incomes of any state and, partially as a result, housing — particularly for renters — can present a considerable financial burden. Across the state, 55.8% of renters spend 30% or more of their annual income on housing, compared to slightly less than 50% or renters nationwide.

Lower income Americans can struggle to pay monthly bills in the best of times, and during economic downturns, financial hardships can be exacerbated. In Mississippi, a staggering 10.6% of households live on less than $10,000 a year. Widespread poverty in the state likely helps explain why so many are struggling to afford basic needs during the pandemic.

Of all adults in Mississippi, 37.1% either missed or will likely soon miss a monthly rent or mortgage payment — the largest figure of any state and well above the 25.3% rate nationwide.