Vermont Business Magazine Between high housing costs and steady inflation, more and more people are worried about losing their home. QuoteWizard by Lending Tree, in a study released today and based on US Census Bureau data, found that 93% of people in Vermont behind on mortgage payments are worried they will face foreclosure in the next two months.
This is by far the highest “fear” rate in the nation, even as the percentage of homeowners behind on their mortgage in Vermont is only 2 percent, which is half the national average of 4 percent (with only a 7 percent average fear factor). The rental situation is similar, with a low number of those actually behind in rent but a high level of fear in Vermont.
Key findings for Vermont:
- 2% of people are behind on their mortgage payments (US average 4%)
- 4% of people are behind on their rent (lowest of any state, US average 15%)
- But 44% of people behind on their rent are facing eviction (US average 21%)
High housing costs, rising rental prices, persistent inflation and an end to eviction moratoriums have many Americans worried about keeping a roof over their heads. QuoteWizard found that nationwide, nearly 28% of people (1 in 4) who are behind on payments are worried they will face foreclosure or eviction in the next two months.
Key national findings:
- 21% of people feel they will be evicted in the next two months
- 15% of people are behind on their rent
- 7% of people are worried they will soon face foreclosure
- 4% of people are behind on their mortgage payments
- Of those behind on their mortgages, Vermont, North Dakota and Kansas have the highest numbers of people facing foreclosure
- Of those behind on their rent, Georgia, Louisiana and Vermont have the highest numbers of people facing eviction
- Nationally, people of color are two to three times more likely to face eviction or foreclosure
Nationwide, housing costs have risen by nearly 70% in the last decade. Income, meanwhile, is up only 30% over the same time period. Combine this disparity with record inflation and we have a situation where housing has simply become unaffordable for many people.
QuoteWizard analysts found that 7% of Americans are worried they will soon lose their house and another 4% are behind on their mortgage payments. Those numbers, however, vary significantly from state to state. More than 90% of people who are behind on their mortgage payments in Vermont fear they will soon lose their home, compared to 2% in Maine.
|State||% facing foreclosure||% behind on mortgage payments|
|New Hampshire||Not available||2%|
While many people are worried about losing their homes, the threat of eviction looms even larger. Rental prices are rising in suburban areas, and we found 16 states where more than 25% of people say they can’t currently pay rent or are worried they won’t be able to in the next two months.
|State||% at risk of eviction|
The threat of eviction is even more real for people who are already behind on their rent. We found that 30% of people are behind on their rent in Louisiana and 15% of people are behind on their rent nationwide. Vermont had the lowest percentage of people who are behind on rent at around 4%.
|State||% behind on rent|
Our analysis also found that people of color are having a harder time paying their mortgages and rent. Black and Hispanic communities are significantly more likely to be facing eviction and foreclosure or be behind on their mortgages. We also found that while the financial position of Black and Hispanic communities has stayed largely the same throughout the pandemic, white communities have seen their risk of eviction or foreclosure decline.
As troublesome as the data presented in this study is, America’s struggle with affordable housing is a problem that may soon get worse. An increase in unemployment benefits, stimulus checks and a moratorium on evictions kept many people in their homes during the height of the COVID-19 pandemic, but those programs appear to be winding down.
President Joe Biden has proposed a $640 billion plan to address a shortage in affordable housing, but the question is, will that be enough?
Foreclosure, rent and mortgage payment information was compiled using data from the United States Census Bureau’s Household Pulse Surveys. Our analysts then broke that data down along state and demographic lines to determine the number of people facing foreclosure or eviction.
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