Homeowners Are Behind on Mortgage Payments—See Where Your State Ranks

There was a time when home payments were stable—you could count on a monthly payment that did not go up for years.

But with soaring costs of home insurance (required for most mortgages) and rising property taxes, the promise of long-term stability in homeownership is eroding.

“The last 10 years have seen home prices, homeowners insurance, and property taxes surge across the U.S.,” says Cotality economist Archana Pradhan. 

After three years of steadily declining rates of serious mortgage delinquencies, that trend began to reverse in mid-2024, says the firm’s new report.

Though taxes, insurance, and maintenance costs have soared, income has not kept pace for most Americans.

Far from the double-digit increases needed to keep up with escrow and mortgage payments in the hardest-hit states, the real median household income in the U.S. declined from $81,210 to $80,610, according to the U.S. Census Bureau.

This is leading to serious delinquencies in loan payments.

“The combination of climate-driven insurance hikes and maintenance expenses is starting to force some difficult decisions,” Mick Duchon with The Corcoran Group in Miami tells Realtor.com®. “We’re getting more calls from sellers who are realizing that their home is no longer financially sustainable long term.”

“You’ve got a lot more natural disasters, from hurricanes to floods to ice storms to wildfires in some cases, combined with a fraud-riddled insurance market,” adds Martin Orefice, founder of Rent to Own Labs in Orlando, FL.

“Premiums are going up fast, and many insurers are pulling out of these states completely. That leaves homeowners with increased costs, and many of them are struggling to keep up.”

Where are the delinquent mortgages?

It’s no coincidence that the states hit hardest by extreme weather events such as floods and hurricanes are suffering the most with delinquent mortgages.

“These states, which have seen significant upticks in delinquencies, have also faced considerable natural disasters, contributing to higher insurance costs,” concludes the report.

While most of the states on the list saw a surge in price growth during the COVID-19 pandemic, the report says that the climb in delinquencies isn’t due to that factor.

“It’s not because [owners] took out risky loans or bought homes they couldn’t afford. It’s because the costs that come after buying—the taxes, the insurance—are rising faster than many people can keep up with,” states the report. “And the monthly bill that was once predictable is now anything but.”

It’s no shocker that Florida comes in No. 2 on the list. The hurricane-prone state has seen insurance costs skyrocket, as well as HOA fees rise in the wake of new legislation following the Surfside condo collapse. Property taxes also went up 50% in five years, according to Cotality.

The average escrow payment, which typically covers taxes and insurance, rose 62% in the past five years, tying with Colorado for the highest increase. Once flourishing, Miami saw the third-largest drop (-4.7%) in year-over-year median price and the second-largest increase of days (+15) on the market.

But it’s Louisiana that tops the list for mortgage delinquencies. This state was hit on all fronts: It had the highest rate of delinquencies for Veterans Administration loans (5.44%), Federal Housing Administration loans (3.96%), and conventional loans (1.25%).

“Louisiana leads the nation in serious delinquencies, with the highest share of loans 90-plus days past due of any state,” explains Molly Boesel, senior principal economist at Cotality. “Though up from last year, levels remain below post-Katrina or financial crisis peaks. Still, any shock—like rising insurance premiums—could push delinquencies higher.”

While Florida saw home price growth of 73% from 2019 to 2024, it was only 27% for Louisiana. Homeowners are more likely to walk away from a mortgage that isn’t paying off with appreciation that keeps up with costs. After all, why would you keep paying off a home you’re likely to lose money on?

Seamus Nally, CEO of rental property management firm TurboTenant, who lives in Fort Collins, CO, tells Realtor.com he has seen a slight uptick in foreclosure properties this year in his state.

“Rising insurance costs is absolutely contributing to it,” he says.

And while he says that Colorado (No. 10 on the list) has made efforts to build more affordable housing such as condos and townhomes, people are staying away because of high HOA fees.

As for Texas (at No. 5), Jeff Adams, a Houston-based real estate investing strategist at Home Investors Zone, tells Realtor.com that rising unemployment is partly to blame.

“Texas Big Tech and startups have taken a major hit over the last two years, and that employment slide is just beginning,” he says. “I predict more owners will realize they don’t have any real alternative now but to walk away from the home.”

Here are the top 10 states with the highest change in year-over-year overall serious delinquency rates for loans of all types, including conventional, FHA, and VA.

Louisiana

Delinquency rate: 1.87%

BPS (basis percentage points) change: 14

Florida

Delinquency rate: 1.43%

BPS change: 38

Oklahoma

Delinquency rate: 1.24%

BPS change: 13

Georgia

Delinquency rate: 1.12%

BPS change: 18

Texas

Delinquency rate: 1.11%

BPS change: 16

Indiana

Delinquency rate: 1.09%

BPS change: 13

South Carolina

Delinquency rate: 1.05%

BPS change: 20

North Carolina

Delinquency rate: 0.83%

BPS change: 15

Nebraska

Delinquency rate: 0.81%

BPS change: 16

Colorado

Delinquency rate: 0.55%

BPS change: 13