"ompared with August 2024, the on-time payment rate is down 216 basis points. That marks the 25th consecutive month of annualized declines, with on-time collections falling by a total of 502 bps in that span. Although the drop is less severe than July's year-over-year deterioration of 279 bps, the sustained slide underscores that renter households remain under financial pressure, the report explained."
"The overall rent collection picture looks somewhat better because more renters are paying late rather than missing payments entirely. The forecasted full-payment rate for August which includes on-time, late and anticipated late payments rose to 93.3%, up 43 bps from the previous month. Full collections are still down 428 basis points from their January 2023 peak of 97.6%. But the decline has been less steep than the drop in on-time payments, highlighting a growing reliance on late payments to close the gap."
"The three-month moving average of late payments has climbed steadily since mid-2024 rising from 8.8% to 11.7% as of June 2025. The increase in late rent payments may reflect structural issues in household cash flow. In past years, late payment rates typically fell in the spring when many renters received tax refunds. That pattern broke in 2025, when late payments surged despite the seasonal cushion."
On-time rent payments have declined significantly, falling 216 basis points year-over-year and totaling a 502 bps drop over 25 consecutive months of annualized declines. Forecasted full-payment rate for August rose to 93.3%, up 43 bps month-over-month, but remains 428 bps below the January 2023 peak. Late payments have increased, with a three-month moving average rising from 8.8% to 11.7% as of June 2025. Seasonal reductions in late payments did not occur in 2025. Household costs began outpacing wages in early 2024, and non-housing debt grew by $40 billion in Q2 2025.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]