About 12% of U.S. renters aren't caught up with payments, according to National Equity Atlas data, and it could get worse this summer as many leases end and landlords boost prices.
That represents 5.2 million American households who were struggling to pay their monthly rents during the Feb. 1 to Feb. 13 period of the National Equity survey. The share was markedly higher for people of color, who are 65% behind; and for people with low income, who are 78% behind. Total renter debt currently stands at roughly $11 billion.
There are about 44 million households who live in rentals, including many on annual leases who haven't felt the impact from soaring rental prices this past year, which account for 34% of all households in the U.S.
February marked the sixth month of single-digit increases in rent prices, extending a trend of moderating prices that began last September. The 1.7% increase seen last month was the lowest yearly increase since May 2021.
It was accompanied by the lowest monthly decline since moderation began, stalling the trend of price decreases at 0.25%. Monthly rental declines averaged nearly 1% over that six-month time period.
February's monthly decreases brought the national median rental price down to $1,937 from $1,942 in January. It is the lowest median rental price in 12 months. Prices peaked in August 2022 at $2,053. February's price represents a 5.65 percent decrease from that peak.