Medical debt significantly increases the risk of housing instability, creating cascading health consequences that disproportionately affect vulnerable populations including low-income individuals and people with disabilities, according to a nationally representative study of US adults.
Researchers from Oregon Health & Science University and Johns Hopkins analyzed data from 1515 adults between 2023 and 2025. Among participants who carried medical debt in 2024, nearly one-quarter experienced housing instability the following year, compared with less than 6 percent of those without medical debt. The study found medical debt was associated with a 7 percentage point increase in the probability of experiencing housing instability.
Adults with medical debt were more likely to be uninsured, have annual household income below $60,000, maintain less than $5,000 in household savings, and have children in the home. These populations face heightened vulnerability to the financial strain medical bills create.
The connection between medical debt and housing instability operates through multiple pathways. Aggressive debt collection tactics can damage credit scores, limiting access to rental properties and affordable mortgages. Medical debt also depletes savings and reduces finances available for essential needs like rent or mortgage payments.
Housing instability creates particular challenges for families with children, who already experience higher rates of unstable housing. The findings carry urgent implications as recent Medicaid policy changes are projected to leave 7.6 million Americans without health insurance coverage by 2034, potentially expanding medical debt burdens. Researchers emphasize the need for policy interventions addressing medical debt and its consequences, including threats to housing security.
See: “Housing Instability Following Medical Debt Exposure Among US Adults, 2023 to 2025” (January 12, 2026)Â
