During a five-year period, approximately 7 million Americans lost their homes to foreclosure during the mortgage crisis and Great Recession. This month, nearly 10 million people are at risk of eviction due to unpaid rent and utilities. CNBC says this comes down to about 18% of renters, and the eviction moratorium, now extended until the end of March, will likely not be long enough. According to a new analysis, the typical renter owes an average of $5,600 for a total $57.3 billion owed. Delinquent renters are most likely to be lower income, less educated, Black, and with children.
The $900 billion relief package passed in December provides $25 billion for both renters and landlords. It is being disbursed by the states and can be used for past and present rent, as well as fees and utilities. Renters must show that they suffered financial hardship due to the pandemic, have incomes below 80% of their area median income and are at risk of becoming homeless.
Zandi and Parrott’s analysis, however, shows that it is not even close to enough. If dispersed expeditiously, which is a big if, the $25 billion would bring the numbers down until April. By March about 6.3 million renters would be behind on payments, with total arrears of about $33 billion. Then the numbers would begin to creep up again.
Advertisement
Related Stories
Sales + Marketing Trends
Brand Loyalty and Why Builders Should Think Like a Hospitality Brand
Whether its offering that personal touch or incorporating experiences into amenity use, home builders have something to learn from the hospitality industry
Innovation
Florida Multifamily Housing Complex Built Using Lego Block–Like System
This patented mineral composite, fiber-reinforced building system stacks Lego-like blocks to create a building solution its creator says is both sustainable and resilient
Affordability
Possible Boost for Affordable Housing in New York City
The developer of New York's Freedom Plaza has added a major affordable housing piece to the project, hoping that will help push through other components of the development