A record share of working-age renters reported trouble paying rent and utilities in 2025, according to forthcoming analysis from the Urban Institute's annual Well-Being and Basic Needs Survey. According to housingwire.com, roughly one in five renters between 18 and 64 said they missed a rent payment or paid late at some point during the year, the highest level since tracking began.
The analysis covers adults ages 18 to 64 and draws on a nationally representative sample. For 2025, it also added older adults for the first time, creating a new baseline for that cohort.
Key facts
- Roughly one in five working-age renters reported missing a rent payment or paying late in 2025, the highest on record.
- The lower-income renter share reporting trouble paying rent in 2025 was 27.8%.
- Middle-income renters reporting trouble rose sharply from the prior year.
- About one in five working-age renters could not pay the full utility bill in 2025.
- 8.9% of renters 65 and older said they had trouble paying rent in 2025, the first reading for this age group.
Background: what the survey captures
The Well-Being and Basic Needs Survey is conducted annually by the Urban Institute and is nationally representative. Its 2025 wave was the first to include adults 65 and older, giving researchers a starting point for tracking the oldest renters in future cycles. Researchers looked at the share of working-age adults, both renters and homeowners, who reported problems covering housing and utility bills.
Samantha Batko, one of the report's co-authors, told HousingWire that affordability stress is no longer concentrated only at the bottom of the income ladder. She pointed to a sharp jump in difficulty among middle-income renters during 2025, and said federal, state, and local authorities all share responsibility for bringing costs down.
Why this matters for real estate
Three channels link this data to property markets. First, single-family rental and build-to-rent portfolios: rent stress usually shows up first in late payments, then in lease terms and turnover. Second, multifamily underwriting: operators underwriting 2027 rent growth should expect more friction on renewals, especially at lower price points. Third, retail and service tenants: households short on rent and utilities tend to pull back on discretionary spending at nearby stores.
The most interesting signal in the data is the middle-income move. The share of middle-income renters reporting trouble paying rent climbed to just over a fifth in 2025, up from the year before. The traditional affordability story is about low-income renters. The 2025 reading says it is now a middle-income story too.
Our analysis: where the stress is heading
The data are broad, not narrow. Lower-income renters remain the most pressured group. Middle-income renters are closing the gap fast. Older renters, just added to the sample, sit at a much lower reading. Batko told HousingWire that pressure has spread beyond the lowest earners and that government at every level can do something about it.
For multifamily operators the implication is simple: the affordability ceiling has moved upward. Even renters earning well above poverty wages are reporting payment trouble. That compresses achievable rent growth across the whole asset class, not just the bottom quartile.
| Renter segment | Prior survey share | 2025 share | Change |
|---|---|---|---|
| Lower-income | Not given | 27.8% | — |
| Middle-income | Not given | 21.6% | Sharp rise |
| Older (65+) | Not surveyed | 8.9% | New baseline |
| Working-age overall | Not given | 20.7% | New high |
A worked example
Say you are underwriting a value-add multifamily deal in a Sun Belt submarket. A 2024 model might have assumed 4 percent rent growth on renewals and 6 percent on turns. With the 2025 data in hand, that same model needs to assume slower growth on renewals across both the lower and middle quartiles. If the property's income mix skews toward middle-income households, the exposure to this kind of affordability stress is higher than older models assumed.
What to watch next
Watch the next Urban Institute survey wave to see whether the middle-income share keeps climbing. Watch multifamily delinquency disclosures from major operators for whether this signal reaches the income statement. Watch utility-cost inflation, which is the second leg of the squeeze. And watch for any rental assistance expansion at the state or federal level, which can absorb part of the demand-side hit.
Key takeaways
- A record share of working-age renters missed or delayed rent in 2025, per HousingWire.
- The affordability story is now spreading into middle-income households.
- Utility costs are the second pressure point in the data.
- Multifamily underwriting needs a lower rent-growth ceiling across all quartiles.
Frequently asked questions
What share of renters missed or delayed rent in 2025?
Roughly one in five working-age renters, per HousingWire citing the Urban Institute survey.
Which group saw the sharpest increase in payment difficulty?
Middle-income renters, whose share reporting trouble rose from the prior year to just over a fifth in 2025, per HousingWire.
Are utilities also part of the squeeze?
Yes. About one in five working-age renters said they could not pay the full utility bill in 2025, per HousingWire.
Are older renters included in the survey?
2025 was the first wave to include adults 65 and older, with 8.9% of older renters reporting payment difficulty, per HousingWire.
