Why a Historic Eviction Wave Is
Bearing Down on U.S.
Bearing Down on U.S.
By Noah Buhayar
August 26, 2020, 5:00 AM GMT+1
Cars with sign 'Cancel Rent' are seen driving around
downtown Los Angeles during a protest to cancel rent and avoid evictions, on
Aug. 21. Photographer: Valerie Macon/AFP via Getty Images
downtown Los Angeles during a protest to cancel rent and avoid evictions, on
Aug. 21. Photographer: Valerie Macon/AFP via Getty Images
With more than 16 million people in the U.S. out of work,
Americans are having to stretch financially to keep the roof over their heads.
According to the Census Bureau, about a
third of renters said in July that
they had no confidence or slight confidence in their ability to pay for housing in August. With Republicans and Democrats in a
stalemate over whether to extend an eviction moratorium and supplemental unemployment benefits,
experts are warning that the country is poised for an eviction crisis of
historic proportions.
Americans are having to stretch financially to keep the roof over their heads.
According to the Census Bureau, about a
third of renters said in July that
they had no confidence or slight confidence in their ability to pay for housing in August. With Republicans and Democrats in a
stalemate over whether to extend an eviction moratorium and supplemental unemployment benefits,
experts are warning that the country is poised for an eviction crisis of
historic proportions.
1. How many people could face eviction?
About 30 million Americans are “at risk” of being evicted
in coming months because they can’t pay rent, according to a review of the
Census survey data by the Aspen Institute Financial Security Program and the
Covid-19 Eviction Defense Project, a coalition of researchers. Management
consultant Stout Risius Ross, in its analysis of the Census data, put the
number at 40 million. Eviction is a legal process, and the burden on
landlords differs by state. But the mere threat of eviction often is enough for
landlords to get someone to move out. Many landlords have been working with
tenants in the hopes that more emergency rental assistance is on its way.
Absent that help, the U.S. is heading for a massive wave of housing
displacement and insecurity. More people will double up with family or end
up homeless.
in coming months because they can’t pay rent, according to a review of the
Census survey data by the Aspen Institute Financial Security Program and the
Covid-19 Eviction Defense Project, a coalition of researchers. Management
consultant Stout Risius Ross, in its analysis of the Census data, put the
number at 40 million. Eviction is a legal process, and the burden on
landlords differs by state. But the mere threat of eviction often is enough for
landlords to get someone to move out. Many landlords have been working with
tenants in the hopes that more emergency rental assistance is on its way.
Absent that help, the U.S. is heading for a massive wave of housing
displacement and insecurity. More people will double up with family or end
up homeless.
2. Will this all happen at once?
It may take a few months for evictions to ramp up. Filings
actually slowed in many places during the first few months of the pandemic.
Many courts were closed and a
patchwork of federal, state and local moratoriums
prevented evictions in many cases. The federal
moratorium expired on July 24, and landlords had 30 days to
notify tenants if they wanted to evict them, meaning Aug. 24 was the earliest date at which the floodgates could open.
As of the end of July, 30 states
lacked state-level protections against eviction during the pandemic.
But even in states where there are bans, they do little to clear people’s
debts. Many now owe so much in back rent that they won’t be able to catch up,
pushing landlords to evict them when restrictions lift.
actually slowed in many places during the first few months of the pandemic.
Many courts were closed and a
patchwork of federal, state and local moratoriums
prevented evictions in many cases. The federal
moratorium expired on July 24, and landlords had 30 days to
notify tenants if they wanted to evict them, meaning Aug. 24 was the earliest date at which the floodgates could open.
As of the end of July, 30 states
lacked state-level protections against eviction during the pandemic.
But even in states where there are bans, they do little to clear people’s
debts. Many now owe so much in back rent that they won’t be able to catch up,
pushing landlords to evict them when restrictions lift.
3. What’s being done to avert this?
On Aug. 8, President Donald Trump signed an executive order
pledging to “take all lawful measures to prevent residential evictions and
foreclosures resulting from financial hardships caused by Covid-19.” But that
measure didn’t authorize any specific action. Real relief would have to come
from Congress, and that means money -- lots of it. House Democrats have passed a plan that would provide $100 billion in rental assistance and
ban evictions, but that’s stuck in stalled negotiation with Republicans on a
new stimulus package; the Senate Republican plan for virus relief didn’t
address evictions. Some cities, states and the private sector have
established funds to help people pay rent.
pledging to “take all lawful measures to prevent residential evictions and
foreclosures resulting from financial hardships caused by Covid-19.” But that
measure didn’t authorize any specific action. Real relief would have to come
from Congress, and that means money -- lots of it. House Democrats have passed a plan that would provide $100 billion in rental assistance and
ban evictions, but that’s stuck in stalled negotiation with Republicans on a
new stimulus package; the Senate Republican plan for virus relief didn’t
address evictions. Some cities, states and the private sector have
established funds to help people pay rent.
4. Why would a landlord evict someone at a time of high
unemployment?
unemployment?
Landlords need to collect rent to cover their
expenses, including mortgage payments
and property taxes. Many also pay
for utilities. Keeping non-paying tenants around can incur operating costs
without generating any revenue. Property owners also worry that letting a
renter live in a unit for free or reduced rent could encourage other tenants
in a building to withhold some of their payments. Landlords may also be
betting that they can fill empty units. Going into the pandemic, there was a
severe shortage of affordable rental housing across the U.S. that was driving
up rents faster than incomes. Vacancy rates were at decades-long lows.
expenses, including mortgage payments
and property taxes. Many also pay
for utilities. Keeping non-paying tenants around can incur operating costs
without generating any revenue. Property owners also worry that letting a
renter live in a unit for free or reduced rent could encourage other tenants
in a building to withhold some of their payments. Landlords may also be
betting that they can fill empty units. Going into the pandemic, there was a
severe shortage of affordable rental housing across the U.S. that was driving
up rents faster than incomes. Vacancy rates were at decades-long lows.
5. Who gets hurt?
Studies show that evictions affect Black and Latinx renters
at much higher rates than White people. Renters with children are also more
likely to be forced out of their home than those without. Getting evicted can
make it harder for people to find a new place to live, because landlords often
don’t want to rent to them. Smaller property owners with
fewer financial resources may get squeezed, too, if they can’t collect
enough rent to cover mortgages, property taxes and maintenance. A wave of
foreclosures on these properties could gut the nation’s affordable
housing stock, hurt city budgets and put
strain on the banking system.
at much higher rates than White people. Renters with children are also more
likely to be forced out of their home than those without. Getting evicted can
make it harder for people to find a new place to live, because landlords often
don’t want to rent to them. Smaller property owners with
fewer financial resources may get squeezed, too, if they can’t collect
enough rent to cover mortgages, property taxes and maintenance. A wave of
foreclosures on these properties could gut the nation’s affordable
housing stock, hurt city budgets and put
strain on the banking system.
6. Is this a U.S.-only problem?
No. U.K. Prime Minister Boris Johnson has twice extended a
ban on evictions in England and Wales, and most British renters will be
afforded a six-month eviction notice period to give them extra time to address
financial hardship. France temporarily extended an annual wintertime ban on
evictions.
ban on evictions in England and Wales, and most British renters will be
afforded a six-month eviction notice period to give them extra time to address
financial hardship. France temporarily extended an annual wintertime ban on
evictions.
The Reference Shelf
The U.S. eviction ban worked well before it expired,
ProPublica reported.
ProPublica reported.
Demand is rising for free legal assistance with housing issues,
according to the New York Times.
according to the New York Times.
More on the special Census Bureau survey project measuring
Covid-19 anxieties.
Covid-19 anxieties.
A San Francisco evictions moratorium survived a legal
challenge by landlords.
challenge by landlords.
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