Home / Daily Dose / Housing Insecurity Ahead?
Print This Post Print This Post

Housing Insecurity Ahead?

House for rentZillow recently released a report highlighting the problems that the expiration of government aid is incurring. According to the real estate experts, dark days are ahead when it comes to renters being able to pay their housing. This could have potential implications not just for those directly impacted, but for owner-investors and the larger housing industry that relies on some renters moving up to become homeowners.

The report revealed that during this past month of June, 32 million Americans received unemployment benefits from the U.S. government. Yet even with this federal aid, more renters were reported to have been late or completely delinquent in paying their rents than at any other time since the onslaught of the coronavirus pandemic.

Zillow recently released a report highlighting the problems that the expiration of government aid is incurring. According to the real estate experts, dark days are ahead for housing. 

During this past June, 32 million Americans received unemployment benefits from the U.S. government. Yet even with this federal aid, more renters were reported to have been late or completely delinquent in paying their rents than at any other time since the onslaught of the coronavirus pandemic.

The bad news continues, with the report predicting that even more renters will be unable to pay on timeif at allin the weeks ahead. The main reason for this cloudy prediction is that boosted government unemployment aid has expired.

More missed payments will likely lead to an increase in housing insecurity. The ramifications of this will not only directly affect renters but also rental investors and owners who also have to make ends meet and rely on renterspayments in order to do so.  

Zillow economist Joshua Clark voiced his take on what exactly is happening, and why: "The rental market has been more affected by the coronavirus pandemic than the for-sale side appears to have been. The steady climb of the past few years has come to an end as rent growth has slowed nationally and prices have outright fallen in a few markets. The saving grace has so far been government aid and eviction freezes, which have provided a lifeline for those who are out of work. But much of that aid has expired, putting many renters and workers who rely on the rental market continuing apace in a vulnerable position.

Rachel Briseño Bruno, a San Antonio-based Realtor, further commented on the current times: This is an incredibly stressful time for so many, especially when it comes to people's homes, the place we go to be safe. Many landlords we work with own one or two properties as an investment for retirement or a child's college fund, and they are on the hook for mortgage payments on those homes. Losing just one tenant who may have lost a job and moved back home or in with a friend can have an enormous impact."

About Author: Andy Beth Miller

Andy Beth Miller is an experienced freelance editor and writer. Her main focus is travel writing, and when she is not typing away from her computer at her home in the Hawaiian Islands, she is regularly roaming the world as a digital nomad, and loving every minute of it. She has been published in myriad online and print magazines, is a fan of all things outdoors, and finds life (and all of its business, technological, and cultural facets) fascinating in their constant evolution. She is excited to spectate as the world changes, and have a job that allows her to bring a detailed account of those constant shifts to her readers at home and abroad.
x

Check Also

Mortgage Connect Earns Place on Financial Services List

Jeff Coury, CEO at Mortgage Connect, said, “In these uncertain times we’re fortunate to be part of an industry that continues to expand, giving us the ability to translate that growth into hundreds of jobs across the country.”

GET YOUR DAILY DOSE OF DS NEWS

Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.