Buying a home has long been expensive for many Americans, and recent years have intensified the pressure on household budgets. Mortgage rates remain elevated while everyday living costs continue to take a sizable share of monthly income. An analysis of mortgage delinquencies by WalletHub, together with household finance surveys from the U.S. Census Bureau, shows that some states are feeling these stresses more acutely than others. The following states stand out for rising mortgage payment problems, increasing financial strain, or both.
Vermont
Credit: Wikimedia Commons
Vermont recorded the largest increase in delinquent mortgages in the WalletHub analysis, with a 12.32% jump from the end of 2025 to the first quarter of 2026. Known for its small towns, outdoor recreation and slower pace of life, the state is now grappling with tighter housing affordability. Limited inventory and higher borrowing costs have combined to push monthly housing expenses higher for many homeowners, contributing to the rise in delinquencies.
Delaware
Credit: Canva
Delaware, positioned near major job hubs such as Philadelphia, Baltimore and Washington, D.C., saw the second-largest rise in delinquencies at 6.92%. Although the state’s population is smaller than many neighbors, its housing market is influenced by regional demand and commuting patterns. That pressure has translated into higher mortgage stress for some residents, even where home prices remain relatively stable.
Louisiana
Credit: Getty Images
Louisiana reported among the highest mortgage delinquency rates in the WalletHub snapshot, with more than 14% of mortgages delinquent in the first quarter of 2026. Homeowners in the state face layered challenges beyond loan payments, including regional economic conditions and cost pressures that can amplify the risk of falling behind on monthly mortgages.
Florida
Credit: Canva
Florida continues to draw new residents, keeping demand for housing high across many markets. Mortgage delinquencies rose by nearly 4% from late 2025 into early 2026. In addition, insurance premiums have climbed sharply in parts of the state, adding a significant cost for homeowners who already face elevated mortgage payments.
Montana
Credit: Getty Images
Montana’s housing market was relatively steady for many years, but the pandemic brought an influx of new residents that pushed prices notably higher in places like Bozeman and Missoula. While delinquency rates in Montana remain moderate compared with some states, rising home values and larger mortgage balances are increasing monthly payment burdens for many households.
Texas
Credit: Getty Images
In Texas, mortgage delinquencies rose nearly 3% between quarters in the WalletHub study. The state also registered notable survey responses in which residents reported difficulty covering household expenses, according to Census Bureau data. Rapid population and job growth in metropolitan areas such as Austin, Dallas and Houston has driven up home prices and, for some buyers, stretched monthly budgets thin.
Alabama
Credit: Getty Images
Alabama ranked among the states where many households reported difficulty paying everyday expenses in Census Bureau survey data. Although housing prices in Alabama are often below national averages, affordability depends heavily on local incomes. Rising costs for groceries, utilities and transportation can quickly erode the margin that keeps mortgage payments manageable for families already facing tight budgets.
Mississippi
Credit: Canva
Mississippi presents a mixed picture: the state showed one of the highest shares of residents reporting trouble with household expenses, yet mortgage delinquencies fell during the WalletHub measurement period. This contrast suggests widespread financial strain that can be sensitive to small changes in income or monthly costs, even where mortgage delinquency metrics improve temporarily.
Kentucky
Credit: Getty Images
Kentucky homeowners are balancing mortgage payments alongside rising expenses for food, healthcare, transportation and utilities. When price increases hit several categories at once, households often lose the flexibility needed to absorb mortgage shocks, increasing financial stress across many families.
South Carolina
Credit: Getty Images
South Carolina recorded an uptick in delinquent mortgages in early 2026. The state has experienced strong population growth and a busy housing market in recent years, and rising demand has pushed prices higher in many areas. Homebuyers who purchased during periods of elevated interest rates may now face tighter household budgets and increased risk of falling behind on payments.
Taken together, the WalletHub and Census Bureau data highlight how mortgage delinquencies and everyday household affordability are uneven across the country. Local market dynamics, regional migration patterns, insurance and utility costs, and broader economic pressures all play a role. For homeowners and prospective buyers, the findings underscore the importance of planning for higher monthly housing costs and building financial cushions that can absorb periods of stress.