Rental affordability pressures widened in 2025, with middle-income renters experiencing a significant increase in difficulty keeping up with housing and utility costs. Urban Institute research found that one in five renter households paid rent late or missed a payment, while the share of middle-income renters reporting rent affordability challenges climbed from 14.3% to 21.6%.
The trend adds pressure to an already strained rental market, potentially affecting rent collections, resident retention, and competition for more affordable units. For multifamily operators, the findings highlight the importance of monitoring renter financial conditions while balancing collection strategies, operating costs, and resident stability.
As higher borrowing costs continue to make housing development more expensive, researchers also emphasized the need for additional housing supply at price points that better match household incomes.
Source: Multifamily Dive
