Alignable’s November Rent Report is out today and rent delinquency rates have escalated for the second month in a row in the U.S., breaking a new 2022 record: 41% of small business owners could not pay their November rent in full and on time.
Reasons cited include the cumulative effects of inflation, rent hikes, higher interest rates, the high cost of labor, and reduced consumer spending among others.
This report is based on an Alignable pulse poll from 11/19/22 to 11/22/22 of 6,326 randomly selected small business owners, as well as historical data from another 100,000 respondents over the past year.
Rise In Rent Delinquency Rates
While Q4 is usually a time when small businesses bring in more revenue and rent delinquency rates drop, unfortunately, the opposite has occurred so far for many industries. November’s rate is four percentage points higher than last month’s was at 37%. And it’s 11 percentage points higher than September’s rate of just 30%.
- 52% say their rent is higher than it was six months ago (up 1% from Oct.)
- 73% say consumer spending is down this month compared to Oct., a jump of 14% from 59% last month.
- 44% of small retailers couldn’t pay their full rent (up 1%).
- 52% of small retailers expect they’ll earn less this quarter than they did in Q4 2021, with 1% saying they’ve already shut down, & 10% predicting they could close soon if their financial situation doesn’t improve. Only 8% say Q4’s been great.
- 57% of beauty salons couldn’t cover rent in Nov., a jump of 18% over Oct.
- 42% of independent restaurateurs couldn’t pay Nov. rent, which is still a high rate, but marks an improvement over 49% in Oct.
- The best news in this report comes from the travel/lodging sector, which is experiencing a major rebound: only 13% of SMBs in this category couldn’t pay Nov. rent, down from 34% in Oct.
- The top states for SMB rent delinquency in Nov. include MI (51%, up 19%), NY (49%, up 4%), MA (45%, down 6%), TX (43%, up 5%), CA (41%, down 3%), IL (40%, up 8%), OH (40%, up 18%), and NJ (38%, down 11%).
- In Canada, 45% of small business owners couldn’t pay their Nov. rent in full, up from 42% in Oct., and 41% in Sept. ON-based businesses are struggling the most with a rent delinquency rate of 45%, up 5% from Oct. BC & AB rent delinquency rates decreased a bit.
To see the full report, go here.
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People are giving up the non “essentials”.
These people who don’t pay their rent are just lazy and don’t want to work hard and save.
The article is about small businesses, not basement dwellers.
The result is still the same
They should really “just learn how to code” and everything would be fine. Right Biden??
This proof Bernie should be president. Socialism can work – with the right leaders.
/s
Socialism has never worked anywhere in the world.
All by design. You will have to buy your bugs, prison clothes and allowed toiletries from Walmart and Amazon who will refuse you service without your jab/barcode.
Drove past a mall today. Didn’t appear all that crowded (but that could well be because the goal of every human being recently appears to be to never leave your house and have the world be shipped to you, either in the form of more stuff, or as an alternate reality on a screen).
Where do you live. I drove past Tyson’s Corner Mall here in McLean Va. It took 30 minutes to go 1 mile.
Federal workers are not affected.
Big-failure socialist government nonworkers are never affected.
Unless the truck driver with the load of booze fails at showing up on time at the local distributor’s warehouse.
That’s because the federal government leech is fed from the rest of the country.
After exchanging Thanksgiving greetings with friends on the Left Coast, I asked them if they would go shopping on Friday. Answer: nah, prices have doubled.
Been to a few shows/performances recently – going to more…everything is sold out & packed. Restaurants are packed, with wait times. People having a good time from what I’ve observed. Maybe I’m just in a bubble tho.
It is truly tragic beauty salons are losing the most money now.
That’s like half the ghetto right there.
those ten inch nails and hair extensions ain’t be doin theyselves.
Working as designed.
The elimination of private owned small business is all part of the plan. Try to support small business as much as you can, if for no other reason, than to say fuck you to the corporations….