Rents soar for millions of Americans as threat of eviction looms
May 5, 2021 | Bloomberg News
Rents are soaring in many U.S. cities as the economy rebounds, squeezing the budgets of tenants who also face increased risk of eviction after courts overturned a pandemic-era ban. There’s no single indicator that captures a complex national picture, as COVID-19 drove major shifts in where people live and work. Still, data point to tight markets in much of the country. The median monthly charge on a vacant rental jumped by $185 in March from a year earlier, according to the U.S. Census Bureau. A national index compiled by Apartmentlist.com shows that rents rose 1.9% in April alone, the most in data going back to 2017.
The rising costs will pile pressure on poorer families who are more likely to rent — and less likely to be earning money right now, in a recovery that’s seen better-paid jobs bounce back faster. For low-income Americans, shelter accounts for 40% of spending. Adding another risk, a federal judge in Washington ruled on Wednesday that the Centers for Disease Control and Prevention had exceeded its authority by ordering a nationwide moratorium on tenant evictions last year.
The ban, due to last through June, had loopholes that allowed some evictions to proceed — but it still offered protection for those who’d lost their jobs. About 24% of renters, roughly 8 million people, missed at least one housing payment since March 2020 according to the Mortgage Bankers Association.
