Eviction Crisis Coming Our Way?
The other day, I wrote about the stimulus programs that are expiring within the next 30 to 60 days. These are key protections afforded the consumer during the worst of the pandemic. One of those programs is the ban on evictions. It expires August 1st. Let’s take a look at how this could play out numbers-wise.
First here is a breakdown of the numbers in the US:
As of 2020, there were 128.45 million households in the US – financeonline.com
44.1 million American households are renters. (National Multifamily Housing Council)
As I have said many times in the past, there is not a good grasp on the number of people who will be affected by the expiration of these programs. Thus, we must rely on surveys and polls which look at exceedingly small sample sizes.
One such survey came from the Household Pulse Survey. Analysis of that survey by the Center on Budget and Policy Priorities concluded that more than 10 million people are behind on their rent and at risk of eviction. Based on the above statistics, that is roughly a quarter of those renting.
According to housing expert Emily Benfer, there were 350,000 evictions in process before the moratorium went into effect in 2020. Once again, who knows the real number? I do suspect that landlords are ready to evict as quickly as possible to start renting to those who can pay.
It is estimated that landlords have lost over 70 billion dollars in rent payments due to the moratorium in the US.
Need a second opinion about money and investment issues? Just ASK BOB! Bob is available and always happy to share his views. Bob Brooks is a Financial Adviser and host of The Prudent Money Radio Show, aired daily at 3 PM CST on 91.3 FM, 97.5 FM, and 99.9 FM in the Dallas Forth Worth metroplex. Listen online at www,prudentmoney.com. You can reach Bob at 972-386-0384 and online at firstname.lastname@example.org.