Small Business Rent Delinquency Rate Hits Highest Level This Year
By: Kerry Pipes
Published: July 4th, 2022
Rent delinquency rates in the US have reached record levels for 2022, according to the Alignable June Rent Report.
The average national delinquency rate was 26 percent at the beginning of the year but has risen 9 percent since then. 35 percent of small businesses in the US couldn’t pay their rent in full or on time in June. That’s the highest rate this year.
Small business owners blame inflation, including increased gas, labor, and supply costs, and say there are simply fewer dollars to pay the rent.
Here are a few insights:
- 48% of US small businesses say their rent has increased, with 32% saying it's over 10% higher and 14% noting it's over 20% more than what they paid six months ago.
- 35% of all US small businesses couldn’t pay their June rent in full and on time, up 2% from May and up 9% from January. This is the highest rate of US rent delinquency among small businesses this year.
- Even more alarming, 63% of transportation small businesses couldn’t afford June rent, up 41% from May. Not surprisingly, 76% of this group said gas prices have had a "very significant" negative effect on their businesses.
- States with the highest rent delinquency rates include: Illinois (44%), Texas (44%), and New Jersey (39%). While they're still high, rates dropped in Massachusetts, New York, Florida, and California.
You can view the full report here.
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