Renters Are Four Months Behind on Payments, Analysis Shows

During a five-year period, approximately 7 million Americans lost their homes to foreclosure during the mortgage crisis and Great Recession. This month, nearly 10 million people are at risk of eviction due to unpaid rent and utilities. CNBC says this comes down to about 18% of renters, and the eviction moratorium, now extended until the end of March, will likely not be long enough. According to a new analysis, the typical renter owes an average of $5,600 for a total $57.3 billion owed. Delinquent renters are most likely to be lower income, less educated, Black, and with children.

The $900 billion relief package passed in December provides $25 billion for both renters and landlords. It is being disbursed by the states and can be used for past and present rent, as well as fees and utilities. Renters must show that they suffered financial hardship due to the pandemic, have incomes below 80% of their area median income and are at risk of becoming homeless.

Zandi and Parrott’s analysis, however, shows that it is not even close to enough. If dispersed expeditiously, which is a big if, the $25 billion would bring the numbers down until April. By March about 6.3 million renters would be behind on payments, with total arrears of about $33 billion. Then the numbers would begin to creep up again.

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