Americans have been fighting to pay for housing costs. In July 2020, an expected 32 percent of Americans missed a rent or mortgage payment. That was up from 24% in April, 31 percent in May, and 30 percent in June. This inclination is worrying experts that a wave of evictions may be coming once local, state, and federal halts on forced removals expire.
Struggling to pay for residence in America is nothing new. In 2018, the Census Bureau determined that 40.6 percent of renters will rent-burdened, indicating they spent 35 percent or more of their monthly income on rent and utilities. A study by Harvard University’s Joint Center for Housing Studies discovered that about a quarter of households paid more than half their income on housing.
From 2000 to 2016, there were about one million evictions per year in the United States, suggesting that about 1 in 40 renter households were evicted per year. According to registration data from the 1950s to 2000, total rents, which include utilities, rose from 384 dollars to 901 dollars. By 2010, that number inclined to 1,010 dollars. And by 2018, it inclined to 1,086 dollars. Data from the Bureau of Labor Statistics implies that from 1964 to 2018, average hourly wages went up from 20.27 cents to 22 dollars and 65 cents, or just 2 dollars and 38 cents. Joined with the loss of millions of affordable housing units since the 1990s, a disaster has been created for low-income Americans.
Evictions can produce serious repercussions on the residents and the community at large. Because when someone is gone through the eviction process, it ruins their credit. And often it can cause them to be blacklisted by other landlords. The main credit bureaus took action to try to solve this. But it hasn’t prevented the label from following tenants who have been evicted. it becomes very difficult to find a house once you have been evicted. It also improves the rate of homelessness and other traumatic events and experiences.
According to a White House statement from 2019, over 500000 people are abandoned in the U.S. on any given night. 65% of those are sheltered, while the other 35% are on the roads. And a new paper by Amherst Capital Management found that 28 million tenants who don’t own their homes or receive financial support are at risk of eviction. But tenants aren’t the only ones to suffer when rent is not paid. The rent itself has ripple consequences for the entire community.
A May study by the American Apartment Owners Association discovered that nearly 60% of landlords said their occupants are unable to pay rent because of the coronavirus, and 80% said they’re willing to operate with their tenants. Landlords can use their insurance for situations like natural disasters, but Covid-19 has not been declared one. A report revealed that insurance rates are going up among the pandemic because companies are seeing it as a higher risk.
A movement also occurred to hashtag cancel rent. In Congress, Representative Ellen Omar entered the Rent and Mortgage Cancelation Act of 2020 to cancel rent until 30 days after the pandemic is over. The bill has 30 co-sponsors in the House but is still expecting a vote in the House Financial Services Committee. As Americans wait for a potential next step from Washington, experts suggest people who are concerned about their rent talk with their landlords.