The U.S. economy has had an uneven recovery from the COVID-19 pandemic. By some metrics, the economy has bounced back and is growing rapidly: Gross domestic product (GDP) in the last quarter of 2021 grew by 7.0%, the unemployment rate dropped to around 4%, and wages are increasing sharply. But the economy is continuing to struggle in other ways: Inflation is at historic highs, supply-chain challenges persist, and labor-force participation remains below pre-pandemic levels.

Homeownership is another example of the pandemic economy’s mixed effects. The value of homes has never been higher, with buyers in markets nationwide competing fiercely for real estate and driving prices up. But many current homeowners who aren’t looking to sell are struggling, as economic hardships during the pandemic have made it difficult to keep up with mortgage payments. And with the Omicron surge this past winter bringing even more disruption to jobs and businesses, the months ahead could continue to be challenging for many homeowners.

The share of U.S. mortgage holders who reported being behind on mortgage payments during the pandemic reached a peak of nearly 12% in December 2020, according to the U.S. Census Bureau’s Household Pulse Survey. At that time, the U.S. was enduring another wave of COVID-19 that brought economic disruption to jobs and businesses. Since then, with vaccines allowing people to work more safely and minimizing further disruption to business operations, the percentage of mortgage holders behind on payments has declined to about 7%—an improved figure, but one that still represents more than 6 million American households.

Further, certain segments of the population have had a harder time keeping up with payments over the last 2 years than others. One of the clearest differences is income level. Low-income workers have been more disproportionately affected by pandemic-related disruptions, and, with less financial cushion, low-income households struggle more with unexpected economic challenges. As a result, 16.8% of mortgage holders making less than $25,000 annually report being behind on payments, compared to just 2.2% of those making $150,000 or more.

Age is another segment where differences appear. Older mortgage holders may have built up more equity in their homes and have retirement savings and guaranteed income from Social Security to help cover expenses. Just 4.4% of mortgage holders aged 65 and over are behind on payments, a much lower figure than that of their younger and middle-aged counterparts.

With pressure on household finances from COVID-19’s economic effects, struggling households often must be creative to make ends meet. While 87.1% of mortgage holders who are current on payments report using regular income to meet spending needs, only 65.3% of mortgage holders behind on payments are doing the same. Instead, people who are behind on payments are more likely to rely on credit cards, savings, friends or family, or government relief to cover their usual expenses.

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Challenges with mortgage payments and the associated pressures on household finances look different across the country. Some of the states with the highest percentages of people behind on mortgage payments are also those with lower incomes, like Mississippi, Alabama, and Louisiana. In these locations, lower-income homeowners may not have the savings or financial resources to keep up with payments. But some states with higher incomes also have high shares of people reporting that they are behind on mortgage payments. In these states, like New Jersey, Hawaii, and California, housing costs are higher, which may increase the financial difficulty for homeowners in case of lost income.

The data used in this analysis is from the U.S. Census Bureau. To determine the states with the highest percent of mortgage holders behind on their payment, our researchers calculated the number of mortgaged households who reported not being current on their mortgage payments compared to the population. In the event of a tie, the state with the higher percentage of mortgaged households lacking confidence in their ability to pay was ranked higher.

Here are the states with the highest percentage of people behind on their mortgages.

States with the highest percent of people behind on their mortgages

15. Nevada

• Mortgage holders behind on their payments: 7.3%
• Mortgage holders lacking confidence in ability to pay: 30.6%
• Total mortgage holders behind on their payments: 62,109
• Total mortgage holders lacking confidence in ability to pay: 261,438
• Median household income: $64,574
• Poverty rate: 12.3%

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14. Oklahoma

• Mortgage holders behind on their payments: 7.3%
• Mortgage holders lacking confidence in ability to pay: 34.5%
• Total mortgage holders behind on their payments: 70,512
• Total mortgage holders lacking confidence in ability to pay: 332,928
• Median household income: $54,536
• Poverty rate: 14.4%

13. Michigan

• Mortgage holders behind on their payments: 7.7%
• Mortgage holders lacking confidence in ability to pay: 26.2%
• Total mortgage holders behind on their payments: 242,211
• Total mortgage holders lacking confidence in ability to pay: 821,894
• Median household income: $61,497
• Poverty rate: 12.7%

12. Rhode Island

• Mortgage holders behind on their payments: 8.4%
• Mortgage holders lacking confidence in ability to pay: 33.5%
• Total mortgage holders behind on their payments: 18,917
• Total mortgage holders lacking confidence in ability to pay: 75,848
• Median household income: $75,682
• Poverty rate: 9.7%

11. Kentucky

• Mortgage holders behind on their payments: 8.7%
• Mortgage holders lacking confidence in ability to pay: 25.2%
• Total mortgage holders behind on their payments: 111,063
• Total mortgage holders lacking confidence in ability to pay: 321,608
• Median household income: $54,191
• Poverty rate: 14.8%

10. Connecticut

• Mortgage holders behind on their payments: 8.7%
• Mortgage holders lacking confidence in ability to pay: 29.0%
• Total mortgage holders behind on their payments: 98,120
• Total mortgage holders lacking confidence in ability to pay: 326,443
• Median household income: $79,719
• Poverty rate: 9.8%

9. California

• Mortgage holders behind on their payments: 9.0%
• Mortgage holders lacking confidence in ability to pay: 27.5%
• Total mortgage holders behind on their payments: 859,036
• Total mortgage holders lacking confidence in ability to pay: 2,620,556
• Median household income: $83,056
• Poverty rate: 11.4%

8. Hawaii

• Mortgage holders behind on their payments: 9.6%
• Mortgage holders lacking confidence in ability to pay: 25.3%
• Total mortgage holders behind on their payments: 33,234
• Total mortgage holders lacking confidence in ability to pay: 89,657
• Median household income: $86,391
• Poverty rate: 8.9%

7. Delaware

• Mortgage holders behind on their payments: 9.6%
• Mortgage holders lacking confidence in ability to pay: 33.7%
• Total mortgage holders behind on their payments: 29,655
• Total mortgage holders lacking confidence in ability to pay: 104,317
• Median household income: $70,911
• Poverty rate: 11.3%

6. Texas

• Mortgage holders behind on their payments: 10.0%
• Mortgage holders lacking confidence in ability to pay: 33.0%
• Total mortgage holders behind on their payments: 754,986
• Total mortgage holders lacking confidence in ability to pay: 2,491,015
• Median household income: $66,031
• Poverty rate: 13.5%

5. Louisiana

• Mortgage holders behind on their payments: 10.2%
• Mortgage holders lacking confidence in ability to pay: 35.5%
• Total mortgage holders behind on their payments: 94,543
• Total mortgage holders lacking confidence in ability to pay: 326,378
• Median household income: $51,730
• Poverty rate: 17.8%

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4. Florida

• Mortgage holders behind on their payments: 10.3%
• Mortgage holders lacking confidence in ability to pay: 31.5%
• Total mortgage holders behind on their payments: 581,970
• Total mortgage holders lacking confidence in ability to pay: 1,780,650
• Median household income: $61,736
• Poverty rate: 12.3%

3. Alabama

• Mortgage holders behind on their payments: 10.9%
• Mortgage holders lacking confidence in ability to pay: 27.2%
• Total mortgage holders behind on their payments: 138,786
• Total mortgage holders lacking confidence in ability to pay: 346,693
• Median household income: $53,956
• Poverty rate: 14.7%

2. New Jersey

• Mortgage holders behind on their payments: 11.8%
• Mortgage holders lacking confidence in ability to pay: 37.3%
• Total mortgage holders behind on their payments: 281,372
• Total mortgage holders lacking confidence in ability to pay: 886,882
• Median household income: $87,016
• Poverty rate: 9.5%

1. Mississippi

• Mortgage holders behind on their payments: 12.1%
• Mortgage holders lacking confidence in ability to pay: 50.4%
• Total mortgage holders behind on their payments: 103,607
• Total mortgage holders lacking confidence in ability to pay: 430,907
• Median household income: $47,247
• Poverty rate: 18.8%

Detailed findings & methodology

The data used in this analysis is from the U.S. Census Bureau’s 2020 American Community Survey and the U.S. Census Bureau’s Household Pulse Survey. To determine the states with the highest percent of mortgage holders behind on their payments, researchers calculated the number of mortgaged households who reported not being current on their mortgage payments compared to the state population. In the event of a tie, the state with the higher percentage of mortgaged households lacking confidence in their ability to pay was ranked higher. Respondents categorized as “lacking confidence in ability to pay their mortgage” were those who were not highly confident. All mortgage data is from Week 41 (December 29, 2021, to January 10, 2022) of the Household Pulse Survey. The income and poverty statistics are from 2020, the most recent data available.