Saturday, November 5, 2022

The Rent Is Too Damn High, Con't

With federal and state pandemic eviction moratoriums coming to an end, and rents jumping 20% or more nationwide from just two years ago, millions are being tossed out into the holiday months with nowhere to go.
 
On a recent Friday morning, more than 100 renters facing eviction filed through Arizona Judge Anna Huberman’s court in what’s becoming a typical day for her, as a wave of evictions hits Phoenix and other cities large and small across the country.

The vast majority of the renters that day had missed their October payments a few weeks earlier and were now at risk of being removed from their homes within days, according to the judge. One woman said her rent money that month went to pay for her mother’s funeral, a day care worker said she didn’t get paid for two weeks when her workplace temporarily shut down due to Covid, and another man said he started a new job and had yet to get his first check, Huberman said.

Eviction filings have been on the rise and were above their historical averages in half of the 1,059 counties tracked by Legal Services Corp., a federally-funded legal aid group, during either August or September. The problem is expected to get worse in the coming months as federal rental assistance money runs out and people are unable to keep pace with rising rents and decades-high inflation, according to interviews with more than a dozen housing advocates, government officials and industry experts.

“Now that rental assistance is over, and now that local moratoriums are over, we’re playing catch-up to what the pandemic did, and my biggest fear is the cliff that we’ve been all anticipating is here. From here on out, it’s going to be a very, very difficult time,” said Tim Thomas, research director at the Urban Displacement Project at the University of California, Berkeley. “I don’t want to be a doom and gloom person, but we’re probably about to see the worst of what’s about to happen.”

During the first year of the pandemic, evictions tumbled after a federal moratorium was put in place making it extremely difficult for landlords to kick out tenants for not paying rents. That moratorium was lifted in August 2021, but even without that restriction in place, the number of evictions stayed well below typical levels in most states and cities because of federal funding that provided emergency rental assistance to tenants.

But that federal money began running out in many areas this summer and the Treasury Department estimates that less than $7 billion out of a total of $46.5 billion remains available, removing the last lifeline of pandemic-era protections that more than 7 million renters have relied on.

The struggle to find affordable housing comes amid wider anxiety and pessimism Americans have around the economy, which voters have consistently ranked as a top concern ahead of next week's midterm elections. A CNBC poll in October found just 16% of voters believed the economy is “excellent” or “good,” and 59% of voters expect there will be a recession over the next 12 months.

Despite a relatively strong job market and historically low unemployment, nearly 7.8 million Americans said they were behind on their rent in October and 3 million felt they were likely to be evicted in the next two months, according to a census survey the same month. That survey found that 2.5 million people had experienced a rent increase of more than $500 over the past year.

"With inflation and the massive increases in rental prices that we've seen over the last few years, it's much worse for low-income renters than it was before the pandemic when we were already in an affordable housing crisis," said Daniel Grubbs-Donovan, a researcher at the Eviction Lab at Princeton University.

The increase in rents has begun to slow as inflation and overall economic uncertainty have more people holding off on moving, according to an analysis by Redfin. Still, rents nationwide were up 9% in September, compared to a year earlier, and more than a dozen cities had double-digit rent increases, it said.

In Phoenix, for example, rent increases have slowed in recent months, but in June were up 24% year over year, with a median asking rent of $2,261. In Maricopa County, which includes Phoenix, evictions are at their highest levels since at least 2016, with more than 45,000 filings this year.

“Lately, it just seems to be all that we’ve been doing,” said Huberman, the presiding justice of the peace for Maricopa County.
 
And whether people want to admit it or not, Covid is still out there. It's going to be a bad winter.

No comments:

Post a Comment