The following report is from Yahoo Finance:
Facing a staggering amount of back rent, hundreds of thousands of individuals and families may be put out of their homes this year as the eviction moratorium comes to an end, according to research from Goldman Sachs.
Following the Supreme Court’s decision last week to strike down the pandemic-era policy that kept renters in their homes despite being unable to pay, economists at the investment bank said on Monday that about 750,000 US households will ultimately be evicted later this year, barring action by Congress.
Crunching data from the Census Bureau and landlord trade groups, Goldman estimated that roughly 2.5 to 3.5 million American households are behind on rent, with landlords ow[ing] as much as $17 billion.
Delinquent renters appeared to be safe from eviction until at least October. However, the high court’s decision to lift the federal ban on evictions indicates that further action may need to be taken from Congress, which the justices cited as having ultimate authority on the matter.
While renters in larger states like California and New Jersey, are currently shielded from eviction under state laws, “roughly 90% of the country will lose access to these emergency protections” by the end of next month, Goldman said.
The end of the eviction moratorium is likely to result in a sharp and rapid increase in eviction rates in coming months unless Emergency Rental Assistance (ERA) funding is distributed at a much faster pace, or Congress addresses the issue.
According to the report
Landlords Confront Bitter Reality, Few Options
Other estimates see the potential for even greater fallout as the eviction protections expire. The National Equity Atlas, a project of Right to the City and the University of Southern California, estimated recently that more than 6 million households were behind on rent as of early August.
Congress authorized almost $47 billion in rental assistance but the pace of funds being distributed by state and local governments remains sluggish; roughly 11% of more than billions in aid has been given out, according to estimates released by the Treasury Department.
Meanwhile, property owners have financial problems of their own as their own costs mount and tenants — many of whom haven’t paid rent in a year — continue to occupy their units.
Among those who have voiced concern over the rental assistance program is one small landlord in Montclair, New Jersey who spoke to Yahoo Finance on the condition of anonymity.
I have a two family non-owner occupied property so there’s no funding available in my situation.
To that end, under the new legislation in Montclair, the moratorium will end in August for renters whose households make at least 80% but less than 120% of the area’s median income (AMI).
However, the moratorium continues through the end of the year for households with incomes below 80% of the AMI, which is $99,500, according to Census records.
They made it way too easy and they keep changing the rules and they keep becoming more and more lax as the time goes on.
Like many other landlords, the situation is getting dire for this Montclair property owner. The person’s tenant owes more than $33,000 in unpaid rent dating back to April 2020. The landlord was forced to put a mortgage loan in forbearance in order to get by; meanwhile, the tenant has not applied for rental relief.
The landlord tried to have a credit bureau claim filed against the backlogged tenant, which prompted the renter to try and strike a deal. However, New Jersey law protects the tenant until September, the landlord explained.
Meanwhile, the process of recovering back rent through the emergency rental assistance program remains slow. According to Goldman’s analysis, it could jeopardize an additional 1 million to 2 million households once state protections expire on September 30.
The strength of the housing and rental market suggests landlords will try to evict tenants who are delinquent on rent unless they obtain federal assistance.
Goldman Sachs analysts wrote
Without new legislation, landlords are also hiking up prices as COVID-19 restrictions end and housing demand spikes. According to RealPage, newly signed rents surged 17% in July compared to the amount paid by previous tenants, reaching record highs.
If an eviction crisis emerges, it would create new inventory of available rental housing, and somewhat offset the increase in housing costs, according to Goldman.
I’ve had four people ask me for an apartment in the last month.
The small landlord told Yahoo in an interview
However, evictions could slow down the job growth and household consumptions, and the risks for Covid infections and public health are more severe, the report said.
The end to the eviction ban has been marginally helpful to landlords and property owners who have been struggling to pay high costs associated with taxes, insurance, utilities and upkeep.
However, some have already been forced to sell their property as debts mount, and the impact of having tenants live for free — for over a year — may linger.
But I’ll still have that nut at the back end of my mortgage, if I decide to refinance, it’ll end up costing me a lot more money or I’ll have to pay off a balloon payment at the end or I’ll have to refinance it. So either way I still have to pay more in finance charges.
The New Jersey landlord explained
AUTHOR COMMENTARY
It’s news no one wants to hear, and these type of reports do not do quite as well, and that’s fine; but the fact remains that I have said many times this economy is broken beyond repair.
The Quickest Way To Know The Economy Is Broken Beyond Repair
We reported not too long ago that Biden basically overstretched his authority to try and get the evictions extended, but they were unconstitutional and the Supreme Court slapped them down.
Biden Officially Extends Eviction Moratorium After Facing Pressure To Reinstate Them
Mainstream media, despite all of this, still continues to pontificate this narrative that everything is hunky-dory, we’re in a boom, v-shaped recovery, yada, yada, yada. And if you believe them then you are a fool. The illusion in your little Mayberry that things are doing alright are going to further erode as time goes on, very soon.
The simple believeth every word: but the prudent man looketh well to his going.
Proverbs 14:15
Within this current situation, it’s a lose-lose scenario with way to fix it. The entire stock market is being completely propped up by the Federal Reserve printing trillions of dollars into existence. So if that stops for a second, the markets will implode and chaos will ensue. But if interest rates are raised, even fractionally, the markets will also crash and a tsunami wave of incredible proportions will sink America for good.
Whatever the case may be, with more tenets being forced onto the streets in many instances and landlords squeezed out of the system, the bigs will continue to come in and gobble up the real estate for pennies.
WEF’s Partner BlackRock Closes In On The Once Unthinkable $10T In Assets
Agenda 2030: You’ll Own Nothing And Be Happy
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
The WinePress needs your support! If God has laid it on your heart to want to contribute, please prayerfully consider donating to this ministry. If you cannot gift a monetary donation, then please donate your fervent prayers to keep this ministry going! Thank you and may God bless you.
Government: Here is a bunch of money you didn’t earn so you can pay your bills since we are destroying the economy with the covid lies. Don’t forget to use it to pay your bills.
Citizens: spends it all on useless garbage.
Government: you didn’t spend it on bills like we suggested, but we feel bad so we will give you more money and make it impossible for landlords to evict you. Don’t forget to use the money to pay your bills.
Citizens: spends money on useless garbage then whines about wanting more, no bills paid. Bills of citizens that do continue to pay their bills increase to cover the loafers.
Government: We stopped the moratorium from ending, let this be a warning to pay your bills, here’s more money.
Citizens: spends it all on more garbage.
Government: the moratorium is officially over, you squatters will be evicted soon, oh, no more money unless you get vaccinated and can prove it.
Citizens: we got vaccinated masters…..
Govenrment: good mindless slaves, here is more money, make sure to spend it all before you die.
Citizens: what was that?
Government: nothing to see here……
Sounds about right.
If they extend the moratorium forever fewer people end up on the streets and then they print more money and you end up in communism.
That’s also what I see coming.
Just saw the first guy who is homeless/living in an old RV, in our area. He just parked out in the middle of a field, not far from town. There are very few Police in this area anymore, so I guess he felt safe parking on private property. All I can say is, he better find a way to go South for the winter, because he won’t be doing well once winter hits.
America is finished!
Yes, I pray he has warmth and able to go south as you said, Bryan. I think that man I way better off than the city slickers, and amen to that, America is FINISHED. That’s all she wrote! As for that hireling hillbilly Donnie swaggart who thinks that God’s still blessing this nation, hahahaha he is in for a very rude awakening! You can bet and let’s pray his Babel building in Baton Rouge Louisiana also crumbles to pieces too, Bryan!
For the 4th of July that Satan center with Jimmy and Donnie swaggart called SBN, they were singing “God bless the USA” (I’m proud to be an American where at least I know I’m free) I bet when that fiasco was going on, Jesus just felt even sicker! They’re in for a nasty surprise!