HONOLULU (KHON2) — Inflation is still on the rise causing supply-chain problems, the labor force to decline and people having to pick and choose what they spend their money on. A new study by Stessa, a rental property management company, ranked which states were behind on their mortgage payments.
They report homeownership is another example of the pandemic economy’s mixed effects. If you are in the house buying market then you know the value of homes has never been higher.
But many current homeowners who aren’t looking to sell are struggling, as economic hardships during the pandemic is making it difficult to keep up with their current mortgage payments.
This past winter heading into the new year many battled with the Omicron surge which caused more disruption to businesses and jobs which could have impacted how homeowners pay their bills.
Stessa reports 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. 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%.
The top three states with homeowners behind on their mortgages are Mississippi, New Jersey and Alabama. Coming in at 8 is Hawaii. Their study showed 9.6% of mortgage holders were behind on their payments with 35.3% lacking confidence in ability to pay. The median household income in Hawaii is $86,391 with the current poverty rate sitting at 8.9%.
In states like New Jersey, Hawaii and California, housing costs are higher, which Stessa suggests may increase the financial difficulty for homeowners in case of lost income.
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To read their report and see the full breakdown head to Stessa’s website.