By Anna Peel. Originally published at ValueWalk.
Alignable’s June Rent Report has just been released, showing that the SMBs rent crisis has reached new heights, as other inflationary trends continue to stunt many recoveries. This report is based on a poll of 4,382 randomly selected small business owners, which just concluded yesterday. Here are a few insights:
SMBs Could Not Pay Their June Rent
- 48% of U.S. small businesses (SMBs) say their rent has increased, with 32% saying it’s over 10% higher & 14% noting it’s over 20% more than what they paid six months ago.
- 35% of all U.S. SMBs could not pay their June rent in full and on time, up 2% from May and up 9% from January. This is the highest rate of U.S. rent delinquency among SMBs this year.
- Even more alarming, 63% of transportation SMBs couldn’t afford June rent, up 41% from May. It’s no shock to learn that 76% of this group said gas prices have had a “very significant” negative effect on their businesses.
- States with the highest rent delinquency rates include: IL (44%), TX (44%), & NJ (39%). While they’re still high, rates dropped in MA, NY, FL and CA.
- In Canada, the problem is even worse, with 43% of small businesses there saying they couldn’t pay June rent (up 4%) from 39% in May. And 55% say they’ve experienced rent hikes.
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