Mortgage Delinquency Rising In Minneapolis, New Data Shows

MINNEAPOLIS, MN — Mortgage delinquency is rising in Minneapolis and across much of the nation, according to new WalletHub data comparing Q1 and Q2 of 2025.

The study found that only 13 of the 100 largest U.S. cities saw any improvement. Analysts said the overall trend is worsening nearly everywhere.

"The rate of mortgage delinquency varies significantly from city to city, ranging from around 3 percent to nearly 24 percent," WalletHub analyst Chip Lupo said.

"The bad news is that while people in some cities are having much more difficulty paying their mortgages than others, the problem as a whole is also getting worse this year. In fact, the mortgage delinquency rate actually increased in all but 13 of the 100 cities in our study between Q1 2025 and Q2 2025."

Minneapolis ranks 54th, with 8.50 percent of mortgages delinquent in Q2 2025. That reflects a 7.17 percent increase from the previous quarter.

Several nearby metros also saw increases:

• Milwaukee: 12.26 percent delinquent (up 0.32 percent)
• Chicago: 7.90 percent delinquent (up 9.52 percent)
• Des Moines: 5.96 percent delinquent (up 7.04 percent)
• Kansas City: 10.01 percent delinquent (up 11.88 percent)
• St. Louis: 8.66 percent delinquent (down 3.77 percent)

WalletHub analyst Cassandra Happe noted that even the cities with the very highest delinquency levels are still getting worse.

She said the most delinquent city, Laredo, Texas, "experienced a nearly 6 percent increase between Q1 2025 and Q2 2025," despite already leading the nation.

Here are the ten cities with the highest mortgage delinquency rates in Q2 2025, according to WalletHub:

1. Laredo, TX: 23.85 percent
2. Detroit, MI: 18.72 percent
3. Newark, NJ: 16.75 percent
4. Baton Rouge, LA: 15.86 percent
5. Philadelphia, PA: 15.79 percent
6. Baltimore, MD: 15.42 percent
7. New Orleans, LA: 15.04 percent
8. Greensboro, NC: 14.78 percent
9. El Paso, TX: 14.69 percent
10. Lubbock, TX: 14.47 percent