4 Texas Cities Rank Among the Most Financially Distressed in America, New Report Finds
Money pressures have tightened across major U.S. cities in recent months. A new WalletHub analysis now puts numbers behind that strain. The report reviewed the 100 largest metro areas and compared credit health, distressed accounts, and bankruptcy trends. As the rankings took shape, four Texas cities landed near the top.
Houston ranked second overall, with more than 8% of its population struggling financially. Dallas followed at fourth, then San Antonio at sixth, and Austin at ninth. That cluster placed Texas cities across the upper tier of the list and signaled a concentrated pattern within one state.
San Antonio’s standing drew added attention as bankruptcy filings climbed from September 2024 to 2025. At the same time, Census data shows about 13% of residents live in poverty, which adds context to the credit conditions reflected in the report.
WalletHub Financial Distress Rankings
WalletHub reviewed the 100 largest U.S. cities and measured financial distress using nine credit-based indicators. Researchers defined distress as credit accounts placed in forbearance or carrying deferred payments, then compared trends in credit scores and bankruptcy filings to determine overall rankings.
As those comparisons came together, Houston placed second nationwide, ranking just behind Chicago in overall strain levels. Dallas followed at fourth, then San Antonio at sixth, and Austin at ninth, which gave Texas four cities inside the top 10.
Houston’s position reflects more than 8% of its population facing financial hardship, along with a high number of distressed accounts per resident. At the same time, rising online searches for terms like debt and loans contributed to the scoring model that shaped the final standings.
Bankruptcy And Poverty Trends In Texas
Texas entered the latest rankings with financial pressure already building across the state. Non-business bankruptcy filings rose 22% last year, which placed Texas among the most financially distressed states in the country. Credit conditions reflected that strain as well, since Texans recorded the ninth lowest average credit scores nationwide.
San Antonio’s numbers draw closer attention within that broader pattern. Year over year bankruptcy filings increased from September 2024 to 2025, and that rise aligned with heavier search activity for debt-related terms measured in the report. Those parallel trends show how household strain surfaced across different data points.
Census figures add further context to the credit and bankruptcy data. About 13% of San Antonio residents live in poverty, which ranks third highest among major U.S. metro areas, and connects long term income levels with current financial pressure.
Statewide Credit Strain Extends Beyond City Rankings
Texas entered the city rankings with warning signs already visible at the state level. Last year, Texas ranked as the most financially distressed state in the country. Non-business bankruptcy filings rose 22% during that period, and Texans recorded the ninth lowest average credit scores nationwide.
Those figures connect directly to the trends seen in major metro areas. Rising unemployment and persistent inflation have tightened household budgets, and that strain appears in higher forbearance counts and deferred payment activity tracked in the report. Credit data, therefore, reflects mounting pressure across everyday expenses.
Looking ahead, the concentration of four Texas cities inside the top 10 suggests that financial stress remains clustered within the state’s largest metros. WalletHub’s findings now provide a benchmark that frames how these cities compare nationally as economic conditions continue to evolve.