While the foreclosure crisis was always a made-up crisis, the eviction crisis is a different story. Home loans in forbearance peaked in May of 2020 at 4.3 million. Meanwhile, renters behind on their rent peaked at 10 million at the end of last year. While 4 million have successfully caught up and are current, that still leaves 6 million people who are behind on rent..
- “Census data show that 6 million households are still behind on rent and could face eviction at the end of June, when federal eviction protections expire” (CBS)
Complicating matters is rent rising at the fastest rates in over 15 years…
- ” April 2021 data shows a national rent increase of 5.3% year over year, up from a 2.4% year-over-year increase in April 2020…” (CoreLogic)
The somewhat silver lining is not all rental properties are created equal. CoreLogic finds that demand is far higher for detached single-family properties vs attached multifamily. “As demand for more space and outdoor amenities remains, detached rentals in particular are experiencing accelerated growth with a 7.9% year-over-year increase in April, compared to growth of 2.2% annually for attached rentals.”
Policymakers have wasted so much time on the non-existent foreclosure crisis let’s hope they have the time to worry about the very real eviction crisis.