Study Finds Small Business Operators Struggling to Pay Rent
The small business rent crisis has reached new heights, according to the latest Alignable Rent Report. That’s on top of continued inflation that is also impairing the small business economy. The survey was conducted last week from 5,321 randomly selected small business owners.
Here are some key findings:
-33% of all U.S. small businesses could not pay their May rent in full and on time, up 5% from April. This is the highest rate of U.S. rent delinquency among small businesses this year.
-56% of minority-owned businesses couldn’t afford May rent, up 20% from April. This is the highest rent delinquency rate for minority small business owners since March 2021.
-States with the highest rent delinquency rates include Massachusetts (42%), Georgia (40%), New York (35%), California (35%), Michigan (35%), and Texas (35%). Rates increased dramatically in Massachusetts, Georgia, New York, Texas, and Florida from April to May.
-Rent issues impact many sectors, including 41% of restaurants, 40% of beauty salons, and 40% of retailers. Restaurants, retailers, and others reached new levels of 2022 rent delinquency in May.
-One reason for increased delinquency rates is skyrocketing rent across the U.S. and Canada among the majority of small businesses. In May, 52% of all U.S. small business owners reported higher rent costs, up 6% from 46% in April, breaking yet another rent crisis record.
-The states with the largest percentage of small business owners reporting rent price increases include Florida (71%), Massachusetts (58%), New York (54%), California (52%), and Colorado (52%).
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