Illinois tops the list for student housing loan distress, according to a new analysis from Trepp, with the percentage of loans that are more than 30 days delinquent clocking in at more than twice the national average.

Illnois also ranks high in the low DSCR and occupancy categories, says Trepp's Stephen Buschbom. He's keeping an eye on the $26 million One North and One South loan in Champaign.

"The financials show that the struggle is not just COVID related as DSCR has been negative since 2019," Buschbom writes. "Per the watchlist comments, the borrower has invested over $4M to renovate the property, but leasing has been extremely difficult since there are several other new student housing communities that began to aggressively compete for a reduced share of tenants, resulting from a steep decline in international students that were historically a major demand driver in this market."