Urban Institute Report Shows Rent Struggles Hit Record Highs

A report from the Urban Institute reveals that 20% of Americans aged 18 to 64 struggled to pay their full rent on time at some point in 2025, marking the highest share recorded since 2019. While lower-income renters remain the most affected, middle-income renters—those earning between 200% and 400% of the federal poverty line—experienced the most significant surge in instability, with the share of those struggling rising from 14.3% in 2024 to 21.6% in 2025.

Researchers attribute this squeeze to a chronic shortage of affordable housing combined with rising costs for food, utilities, and gas. This trend creates a ripple effect in the rental market, as middle-income earners compete for cheaper units, which in turn increases pressure on the lowest-income households.

Supporting data indicates a broader trend of financial instability for the middle class. The Federal Reserve Bank of Richmond found that middle-income Americans are increasingly holding multiple jobs to maintain stability. Additionally, a survey by Primerica found that 71% of this group believe their income cannot keep pace with the cost of living.