Real EstateJul 31, 2024
Why Can't Americans Pay Their Mortgage? đźŹ
@visualcapitalist
What We’re Showing
This graphic shows the financial reasons that Americans can’t pay for their mortgage. Figures represent reasons for new 90+ day delinquencies on single family homes, based on data from the U.S. Department of Housing and Urban Development.
Key Takeaways
- The share of Americans citing that a “reduction of income” was the primary reason for a seriously delinquent loan has returned to pre-pandemic levels
- In Q4 2020, nearly 84% of Americans cited “national emergency” as the main reason for delinquency, and over the next three years it remained the top reason overall
- As of May 2024, 3.5% of single-family residential mortgages were seriously delinquent
- A separate study shows that cash-flow problems were responsible for 70% of underwater mortgage defaults between 2008 and 2015, while strictly negative equity caused just 6% of these defaults
Dataset
| Fiscal Quarter | % Citing Reduction of Income | % Citing Unemployed | % Citing Excessive Obligations |
|---|---|---|---|
| 2019 Q3 | 26.8 | 5.8 | 22.2 |
| 2019 Q4 | 25.4 | 5.3 | 21.7 |
| 2020 Q1 | 21.6 | 4.5 | 18.4 |
| 2020 Q2 | 17.6 | 4.3 | 15.4 |
| 2020 Q3 | 6.0 | 1.9 | 2.9 |
| 2020 Q4 | 5.0 | 1.8 | 2.7 |
| 2021 Q1 | 5.6 | 2.0 | 3.6 |
| 2021 Q2 | 5.6 | 2.1 | 3.9 |
| 2021 Q3 | 5.9 | 2.0 | 4.7 |
| 2021 Q4 | 6.9 | 2.1 | 6.0 |
| 2022 Q1 | 7.4 | 2.1 | 6.7 |
| 2022 Q2 | 9.1 | 2.5 | 7.7 |
| 2022 Q3 | 11.3 | 3.1 | 9.6 |
| 2022 Q4 | 14.3 | 3.9 | 11.0 |
| 2023 Q1 | 16.6 | 4.5 | 11.9 |
| 2023 Q2 | 19.3 | 5.3 | 12.6 |
| 2023 Q3 | 23.1 | 6.4 | 14.7 |
| 2023 Q4 | 25.7 | 8.1 | 16.6 |
| 2024 Q1 | 25.2 | 9.5 | 17.4 |
| 2024 Q2 | 27.2 | 11.2 | 18.1 |
Data sources
Represents financial reasons for new 90+ day delinquencies on single family loans
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