It's getting harder to afford rent in the U.S., even for middle-income families

Key Points:

• A new Urban Institute report reveals that an increasing number of middle-income renters in the U.S. are struggling to pay rent, with 20% unable to pay full rent at least once in 2025, up from 14% the previous year.
• Housing affordability challenges are worsening due to rising costs of necessities, forcing many renters to choose between paying rent and other essential expenses like food and medication.
• While low-income renters have historically faced high housing cost burdens, the sharpest increase in rent payment difficulties is now seen among middle-income renters earning between $31,300 and $62,600 for individuals or $53,300 to $106,600 for families.
• The trend is specific to renters, as homeowners' mortgage payment affordability has remained stable over the past seven years, but rent delinquency has been rising since 2022, especially in the South and Northeast.
• Experts warn that increased rent defaults among middle-income households could lead to higher eviction and homelessness rates, compounded by varying state eviction laws and rising living costs.