An 'Avalanche of Evictions' Could Be Bearing Down on America's Renters

[Zorro]

The economic downturn is shaping up to be particularly devastating for renters, who are more likely to be lower-income and work hourly jobs cut during the pandemic.

The United States, already wrestling with an economic collapse not seen in a generation, is facing a wave of evictions as government relief payments and legal protections run out for millions of out-of-work Americans who have little financial cushion and few choices when looking for new housing.

The hardest hit are tenants who had low incomes and little savings even before the pandemic, and whose housing costs ate up more of their paychecks. They were also more likely to work in industries where job losses have been particularly severe.

Temporary government assistance has helped, as have government orders that put evictions on hold in many cities. But evictions will soon be allowed in about half of the states, according to Emily A. Benfer, a housing expert and associate professor at Columbia Law School who is tracking eviction policies.

“I think we will enter into a severe renter crisis and very quickly,” Professor Benfer said. Without a new round of government intervention, she added, “we will have an avalanche of evictions across the country.”

https://www.nytimes.com/2020/05/27/us/coronavirus-evictions-renters.html

Hard times ahead.

[napi21]

1. You could be right, but it woulfd be very foolish on the landlord's part. If they evict the

current renters, but, unlike normal times, instead of just advertising for another renter, everyone is in the same mess. No one has any money, so the landlord will bel eft with an empty building & NO INCOME! It would be better for everyone if the landlord just tried to work out a way their renters can catch up on the back rent when they go back to work.

[Uben]

4. " tried to work out a way their renters can catch up"

...which is exactly what I am doing. This isn't the first crisis I've had, and I'm sure it will not be the last. With 158 units (it's a small mom/pop operation), we are working with about 10 tenants to try and keep them. I was pleasantly surprised it wasn't more! It'll keep things tight for a few months, but we will get through it. I hate losing good tenants and will always try to see if a solution can be achieved. Fortunately, mine are paid for, so no mortgage to worry about. Just taxes, repairs, employee wages, utilities and insurance. It's the big corporate owned units that will be ruthless. They have much higher rents, mortgages, and everything we have as well. They can't operate on a small margin like we can.

[Moostache]

2. It is worse than just evictions...

Its an avalanche that is picking up everything in its path...

First, the renters are evicted...then the owners have open units but no one to rent to because the shut down eliminated so many potential tenants.

Now the banks begin foreclosing on the landlords for inability to repay their loans...

And the landlords are the next domino to topple, because their income stream from renters is gone - and they are now homeless and unemployed or bankrupt just like their former tenants...

This begins to infect the larger community as people who still have jobs and money and homes get scared they are possibly next and cut their spending in response...

Then the depression is truly underway...

Well, as many people are approaching 4 missed pay checks (2 months with little to no income and no jobs) we are already there...and states are just about to join the party as they run out of money and credit and begin furloughing first responders, police, firemen and close their government offices and cut services.

This thing was kicked off by the incompetence of Trump and his fixation on the NYSE index as the ONLY metric for the health of the economy. He wanted to keep claiming (falsely and stupidly) that HE ALONE was responsible for creating the "Greatest Economy in the History of Civilization". So he did nothing as the virus raged across the globe and found fertile footholds in the for-profit healthcare disaster of the USA.

Now? Its too late...the horses are out of the barn, the fencing is destroyed and there is no quick solution to what is now a long-term problem. The economy (surprise, surprise) was never really greatest anything recently. It was great at increasing profit margins for those at the top, but it was abject failure for the middle and lower classes as they were revealed to be over-extended, under-compensated and utterly unprepared for a loss of their job for both financial and physical health.

What lies ahead, especially as the time to prevent the worse effects of the disaster steaming straight at us has been squandered on 25 year old conspiracy theories and maniacal pimping of unwarranted drugs, is going to make the Great Depression take a drastic reduction in title to the "sort-of bad Depression" or the "Holy Hell do I WISH we were there" Depression.

Trump: "What do you have to lose?" His retort in '16 and really up until today even... Well, the answer? EVERYTHING.

[scarletwoman]

3. Homelessness means more vote suppression.

Activists will need to step up and organize ways for the newly homeless to still be able to vote.

[Dustlawyer]

5. I had a middle aged man address me this morning while I was parked in front

of a strip center business. He asked if I worked there, I didn’t. He went on to explain that he was laid off from Motiva, a local refinery. These are 6 figure jobs for most working there. He wanted to speak with the owners to offer to wash their windows to keep supporting his family. He said he made $38 yesterday. He used to make that in an hour. Most of the guys in the plants in our area are die hard Trumpsters, including the unionized ones. As he wandered off I wondered what he thought of Trump now.

[uponit7771]

7. They're still blaming China and that's why Pelosi's move in the house today was a masterstroke ...

... she is the most powerful women in the world

[uponit7771]

6. K&R, McConnell is already saying no to more stimulus ! I pray someone is screaming this in KY!

[Xolodno]

8. Evictions and foreclosures are coming.

And it depends on state and/or county/city as to how soon. In California, there are a lot of protections for the renter or owner, takes awhile to go through the process. But it will eventually happen.

I think owner operators of rental properties will probably work something out with their good tenants. Costly ones, they will give the boot. And then take a gamble on another renter who was renting from a corporate company.

Corporate owners will follow policy (so they don't get sued) and toss people out. Relist the rental and when no one takes, start dropping the rates. They'll probably require a higher deposit if you have an eviction on your credit report...but that deposit will likely still be below what they required before. And if they can't make a profit even after that, sell the property to another investor and write it off as a loss.

I suspect property values will slam to the floor. And not just home sales, but retail buildings as well. I think a lot of local malls will shut down as well. Add to that, office space will also take a hit, companies now know their employee's are just as productive at home. They'll eliminate designated seating, install lockers and require you in the office x number of days instead of the full 5 days.