Eviction Protections Expire
More than 11 million people in the United States are behind on their rent or mortgage payments, and many of them may be evicted when the nationwide eviction moratorium ends in June.
In September last year, The Centers for Disease Control and Prevention declared a temporary halt on the evictions of tenants to prevent the further spread of the virus. Although the temporary halt didn’t stop tens of thousands of Americans from getting evicted, it did decrease the typical number of eviction filings by at least half over the same period, according to researchers.
Experts predict that if the moratorium is lifted, the number of evictions might soar. According to a study conducted by The Center on Budget and Policy Priorities, almost 15% of adult renters are behind on their payments. I’m no expert, but 15% of adult renters being evicted can’t be good for the economy.
Housing activists say the removal of the moratorium comes at a bad time for both landlords and tenants, as states scramble to distribute the $45 billion in rental aid set aside by Congress to address the issue. Until all the money is spent, activists say the moratorium should remain in place.
However, many landlords aren’t fans of the policy. Landlords say they can’t afford to provide free housing or bear the burden of the country’s large rental debts, which is estimated to be as high as $70 billion.
If states can use the $45 billion in rental aid effectively, they may be able to bail out tenants and landlords before the wave of evictions come.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.