- Pandemic shutdown resulted in loss of +22M jobs in March and April and unemployment rate went from 4.4% in early March to 14.7% in late March and April
- Unemployment rate dropped to 13.3% in May
- Apartment List monthly survey looked at no or partial housing costs payments in April, May and June
Unemployment is a clear indicator of whether or not housing cost payments are made. ApartmentList just released its latest monthly survey on housing payments made or not made by 4,000 respondents who collectively matched gender and age distribution of renters and mortgage holders in the US. This research helps us understand what’s going on in the world of housing costs payments.
Download Your FREE Ultimate Agent Survival Guide Now. This is the exact ‘do this now’ info you need. Learn NOW How to Access All The Bailout Program Cash You Deserve. Including Unemployment and Mortgage Forbearance Plans. To Access the Ultimate Agent Survival Guide Now Text The Word SURVIVAL to 31996.
As of the first week of May, 22% of respondents had not made a housing payment, an increase from 12% in April, according to ApartmentList. In June, 19% made no payments. Partial housing payments reflected similar patterns.
The National Multifamily Housing Council tracks rent payments and corroborated the results of ApartmentList’s survey. Most tenants did make a payment by the end of the month but those “late payers” were more likely to miss the next month’s rent.
Take a look at ApartmentList’s survey of mortgage and rent payments missing at the end of the first week of the month:
By Month No Payment Partial Payment
April 12% 12%
May 22% 9%
June 19% 11%
By Type No Payment Partial Payment
Renters 20% 12%
Owners 18% 11%
Income Level No Payment Partial Payment
$0 – $24,999 22% 18%
$25K – $49,999 22% 12%
$50K – $74,999 19% 115
$75K – $99,999 16% 9%
$100,000+ 14% 7%
By Age No Payment Partial Payment
18 – 29 21% 19%
30 – 44 18% 15%
45 – 60 20% 6%
60+ 16% 3%
Work Status No Payment Partial Payment
Work at Home FT 14% 7%
Work at Home PT 19% 22%
Cannot Work at Home 25% 9%
ApartmentList also found that renters and owners who were younger, in lower income brackets and who were first-time buyers were the most concerned about losing their homes.
Will these numbers improve or continue to deteriorate in the coming months? Remember that the Federal Reserve projects unemployment at 9.3% by the end of 2020 and 5.5% by 2022. Remember too that unemployment benefits and moratoriums on foreclosures and evictions will eventually expire and that a second wave of COVID-19 may potentially rear its ugly head in the fall.
Thanks to ApartmentList, the National Multifamily Housing Council and the New York Tomes.
Also read: St. Louis Fed Projects Economic Freeze Could Cost 47M Jobs, Jobs Numbers “Could Be Much Worse”, Podcast: Choose ONE, Rich And Free or Broke And Dependent. (You ‘Said Rich And Free’…Why Aren’t You?) | Tim and Julie Harris