Key Highlights
- Bloomberg predicting that worst is yet to come for both renters and landlords
- 33% of renters paid no rent in July while 45% not confident they can pay rent in August
- One analysis says that landlords could lose +$22B in rent over next 4 months
Missed housing payments began adding up in July. According to ApartmentList, nearly one third of renters and homeowners did not pay their rent or mortgage in full during July. 19% of people made no housing payment at all while 13% had made a partial payment. More than 40% of those aged 18 to 29 did not make full on-time housing payments in July and an even higher percentage of lower-income households missed payments.
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In a recent weekly US Census Bureau study, 12% of renters polled said they had no confidence in their ability to pay August’s rent. In places like New York and Houston, +20% of renters say they have no confidence in their ability to pay rent in August. Another 18% said they had only slight confidence in being able to pay.
Most experts indicate that the only reason landlords haven’t gone “belly-up” along with their tenants has been due to emergency relief funds coming from the government.
Now that these emergency relief funds are on ice and eviction moratoriums have expired, Bloomberg predicts that the “worst is yet to come.” John Pollock, staff attorney with the Public Justice Center, said, “You’d have to go back to the Great Depression to find the kind of numbers we’re looking at right now. There’s almost no precedent for this, which is why it’s so scary.”
At risk for landlords is +$22B in lost rent payments over these next four months. At risk for renters is eviction.
Mary Cunningham, vice president of the Metropolitan Housing and Communities Policy Center at the Urban Institute, said, “If Congress doesn’t do anything, I think we are in for a dark fall and winter.”
As of August 3, Congress has not succeeded in resolving its impasse about extended emergency relief funding for renters, borrowers or landlords. The Federal Housing Finance Agency FHFA) announced in mid June that Fannie Mae and Freddie Mac extended its single-family moratorium on foreclosures and evictions “until at least August 31.” Other foreclosure and eviction moratoriums in states and cities have been lifted per those localities.
Thanks to the Zerohedge.com, FHFA, and BloombergNews.
Also read: #CancelRent Is Rallying Cry for Tenants, Despite Pandemic, New Agent Real Estate Applications Keep On Coming, Podcast: The Stone Cold Truth About What Happens Next In Real Estate | Tim and Julie Harris
