As eviction moratoriums expire at the federal and local levels, millions of U.S. renters could be at risk of eviction over the next several months, according to a report compiled by a series of housing researchers. Nearly half of renters were already cost-burdened before the pandemic, according to the Joint Center for Housing Studies, and roughly one third of U.S. renter households were unable to make a full August payment in the first week of the month, according to ApartmentList.
However, economic and legal conditions provide homeowners or potential buyers with far more protections—and even benefits. Because mortgage rates have hit a series of record lows, home buyers are rushing to lock in low rates and current homeowners are refinancing their mortgages. On top of this, homeowners with federally backed mortgages can enter forbearance for up to one year.
“The housing market embodies the inequality that was magnified and exacerbated by COVID-19,” Diane Swonk, chief economist at accounting firm Grant Thornton, wrote on Twitter. “My stomach churns every time I think of what the evictions will mean for homelessness, which was rising when we were at 3.5% unemployment.”
