TRD Insights: Most renters at risk despite aid

Housing assistance has helped 38% of households, mostly homeowners

TRD New York TRD INSIGHTS /
May.May 14, 2020 09:46 AM
The United States’ housing policy response to the coronavirus crisis has “significant gaps” that leave most renters vulnerable (Photo by Andrew Lichtenstein/Corbis via Getty Images)

The United States’ housing policy response to the coronavirus crisis has “significant gaps” that leave most renters vulnerable (Photo by Andrew Lichtenstein/Corbis via Getty Images)

The United States’ housing policy response to the coronavirus crisis “leaves significant gaps,” with renters most exposed to the economic fallout, according to a new report from Amherst Capital Management.

In addition to one-time stimulus checks and expanded unemployment benefits, housing assistance — including forbearance and eviction protections — has been focused on properties owned by or with mortgages backed by government agencies such as Fannie Mae, Freddie Mac and Ginnie Mae, the report notes. Such assistance has “has been helpful in mitigating the financial impact of the crisis” for 38% of American households, or 48.1 million.

As the below graphic shows, about three-quarters of those households (35.7 million) are homeowners and one quarter (12.3 million) are renters. Meanwhile, another 28 million renter households have not received these forms of assistance.

“A gap exists between government and non-government supported households that does not address the financial needs of the consumer, and is instead driven by who financed the homes they live in,” the report states.

Renters are more vulnerable to the crisis because they have lower income on average, spend a higher proportion of their income on housing, and have a higher chance of becoming unemployed.

“Absent additional intervention, our analysis indicates there is a risk of a number of evictions and foreclosures in excess of the levels we saw in the wake of the Great Recession,” Amherst researchers conclude.

(Boxes are not to scale. Data sources: CPS/HVS, 2018 American Community Survey, National Multi Housing Council, Center for Budget and Policy Priorities, Urban Institute)


Related Articles

arrow_forward_ios
The process for challenging property assessments is so antiquated, officials won’t do Zoom meetings. (iStock)

“A recipe for disaster”: Fighting property taxes in a pandemic

“A recipe for disaster”: Fighting property taxes in a pandemic
Clockwise from left: Bronx housing court at 1118 Grand Concourse, Governor Andrew Cuomo, Judge Lawrence Marks, New York Supreme Court at 60 Centre Street (Getty; Google Maps; Wikipedia; New York State Courts)

Attorneys find ways to “eject” tenants without Housing Court

Attorneys find ways to “eject” tenants without Housing Court
Cadillac Fairview CEO John Sullivan and the RCB Centre in Toronto (Google)

This Canadian office giant has a strategy for a return to work

This Canadian office giant has a strategy for a return to work
Bars, restaurants and live entertainment venues around the world are now weighing their reopening options. Some owners say they can’t cover the cost of operating at reduced capacity. (Getty)

Facing the music: Entertainment venues, restaurants weigh reopening options

Facing the music: Entertainment venues, restaurants weigh reopening options
Anbang’s Andrew Miller, Mirae’s Peter Lee and (from left) JW Marriott Essex House, the Westin St. Francis in San Francisco and the Four Seasons in Jackson Hole (Credit: Marriott, Westin, Four Seasons)

Buyer’s remorse?: How Anbang’s $5.8B hotel deal went sideways

Buyer’s remorse?: How Anbang’s $5.8B hotel deal went sideways
Softbank's Marcelo Claure, Masayoshi Son and Rajeev Misra (Getty; iStock)

Internal feud at SoftBank casts doubt on Vision Fund

Internal feud at SoftBank casts doubt on Vision Fund
Commercial real estate property sales fell to their lowest level in a decade as a result of the economic slowdown caused by the coronavirus pandemic. (Pixabay)

TRD Insights: Commercial deal volume plummeted 71% in April

TRD Insights: Commercial deal volume plummeted 71% in April
Bed Bath & Beyond is planning to reopen 600 U.S. stores as states begin to wind down shelter-in-place orders. (Getty)

Bed Bath & Beyond to reopen 600 US stores

Bed Bath & Beyond to reopen 600 US stores
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...