US rent affordability crisis hits middle-income households

Research from the Urban Institute indicates a growing rental affordability crisis in the United States, with 20% of surveyed adults aged 18 to 64 reporting they were unable to make a full rent payment at least once in 2025.

Notably, middle-income renters—defined as those earning between 200% and 400% of the federal poverty line—experienced the most significant increase in financial hardship. This group saw the share of renters struggling with payments rise from approximately 14.3% in 2024 to 21.6% in 2025. While lower-income renters remain the most vulnerable, with nearly 28% unable to afford housing payments, the trend suggests that economic pressures are spreading across higher income brackets.

Other economic stressors include difficulties paying for utilities and fuel, reported by over 20% of renters. Researchers noted that the housing ladder is becoming ‘increasingly jammed,’ as middle-income households that previously transitioned into homeownership are now competing for the same rental units. Geographic data shows that the South and Northeast regions are experiencing the most pronounced increases in rent defaults.