California renters will owe $1.7B in back rent by year end: report

Statewide, renters on average owe their landlords just under $7K each

Los Angeles /
Nov.November 13, 2020 09:03 AM
Federal Reserve officials expect back rent across California will total nearly $1.7 billion
Federal Reserve officials expect back rent across California will total nearly $1.7 billion

California renters will owe their landlords a total of nearly $1.7 billion by the end of the year.

That’s according to a new study by the Federal Reserve Bank of Philadelphia, which estimates 240,000 renter households statewide are behind on rent, with an average debt of $6,953, the Los Angeles Daily News reported.

The state’s eviction moratorium runs through Feb. 1. It allows landlords to pursue back rent through small claims court starting in March. Tenants are required to pay at least a quarter of their rent between Sept. 1 and Jan. 31 to qualify for eviction protections.

Back rent owed by California renters accounts for more than a quarter of all back rent owed nationwide, which the report concluded will total $7.2 billion by the end of the year. Californians on average owe about $1,500 more than the national average.

California’s eviction moratorium is meant as something of a stopgap while state lawmakers draw up a more permanent solution to the question of evictions and foreclosures. There are statewide concerns that a wave of foreclosures and evictions could hit once protections at various governmental levels expires.

The federal government, through the CDC, has an eviction moratorium in place through Dec. 31. The Philadelphia Fed warns that thousands of tenants nationwide are at risk of eviction when that expires.

Cities and counties can and in most cases have put their own eviction protections in place. The Apartment Association of Greater Los Angeles is fighting L.A.’s eviction moratorium in court, arguing that it does not afford landlords the same protections as it does renters. [LADN] — Dennis Lynch 


Related Articles

arrow_forward_ios
A photo illustration of the recently nixed mixed-use complex at 27001 La Paz Road in Mission Viejo (ValueRock Realty, iStock)
South OC city puts kibosh on mixed-use housing plans
South OC city puts kibosh on mixed-use housing plans
Michael Gray and 309 Via Lido Soud (Hoag Hospital, Coldwell Banker via Toby Ponnay)
St. John Knits scion seeks high-water mark on Newport Harbor manse
St. John Knits scion seeks high-water mark on Newport Harbor manse
Engelbert Humperdinck in Jayne Mansfield’s famous “Pink Palace” in Holmby Hills back in the day. (Getty)
Engelbert Humperdinck seeks $6.2M for Bel Air mansion — but it needs work
Engelbert Humperdinck seeks $6.2M for Bel Air mansion — but it needs work
This home was about to be sold — that a wildfire burned it down. (Getty)
Wildfire claims home “one signature away” from multi-million dollar sale
Wildfire claims home “one signature away” from multi-million dollar sale
From left: Bob Hope, Dolores Hope and Ron Burkle in front of 10346 Moorpark Street in Toluca Lake (Getty Images, Zillow, iStock)
Ron Burkle lists Bob Hope’s former estate in Toluca Lake
Ron Burkle lists Bob Hope’s former estate in Toluca Lake
Legacy Partners' W. Dean Henry with The Verandas (Legacy Partners, The Verandas Apartments)
Legacy Partners unloads 209-unit apartment complex in West Covina for $92M
Legacy Partners unloads 209-unit apartment complex in West Covina for $92M
Laguna Niguel (Jeff Gritchen/Orange County Register/Getty, iStock)
Laguna Niguel wildfire hits swath of luxury homes
Laguna Niguel wildfire hits swath of luxury homes
Roy Eddleman and exterior of Villa Firenze (University of California Irvine, Zillow)
Villa Firenze listed for $120M
Villa Firenze listed for $120M
arrow_forward_ios

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

Loading...