August brings no sign of the rent apocalypse

Industry groups are concerned that renters will not make payments as government money dries up

National /
Aug.August 17, 2020 06:00 PM
(iStock)

(iStock)

Tenants across the country are largely still paying rent despite high unemployment and waning government aid, a new report found.

About 87 percent of apartment households made a full or partial rent payment by Aug. 13, according to the National Multifamily Housing Council’s Rent Payment Tracker. That was only a 2-point drop from the same period a year ago, when the economy was humming.

NMHC surveys 11.4 million units of professionally managed apartment units across the country.

Doug Bibby, the organization’s president, said the rent collections could decline, however, as relief through the CARES Act dries up. The federal unemployment benefit of $600 a week expired in the last week of July, and job growth is not likely to make up the difference.

“With that support now having expired more than two weeks ago, households across the country are grappling with even greater financial distress,” Bibby said in a statement.

Unemployment is steadily declining across the U.S. In July, the U.S. unemployment rate was 10.2 percent, down from its peak of 14.7 percent in April. Still, the U.S. has lost about 13 million jobs since the coronavirus gained a foothold in February, according to the Department of Labor.

For the unemployed, the next few weeks, or months, could be tough. Democrats and Republicans have failed to compromise on a new stimulus package, which was expected to extend the unemployment bonus, albeit at a diminished level, and perhaps include another round of $1,200 stimulus checks.

In addition, eviction moratoriums are also set to expire in many states, and some landlords are eager to move out tenants who have not paid rent for months.


Related Articles

arrow_forward_ios
Drawings of Advantis (City of Lake Worth Beach)
Lake Worth Beach approves 230-unit multifamily development
Lake Worth Beach approves 230-unit multifamily development
Grant Cardone (Getty)
Grant Cardone crushes lawsuit accusing him of misleading real estate investors
Grant Cardone crushes lawsuit accusing him of misleading real estate investors
The Estate Companies Managing Principal Robert Suris and Principal Jeffrey Ardizon with the existing Ramada Inn property and renderings of Alture Westland multifamily building (The Estate Companies)
Estate Companies scores $30M construction loan to turn Hialeah Ramada into multifamily
Estate Companies scores $30M construction loan to turn Hialeah Ramada into multifamily
Renderings of the Pembroke Tower project (Forum Architecture)
Developer wins approval for senior affordable housing project in Pembroke Pines
Developer wins approval for senior affordable housing project in Pembroke Pines
Miami Worldcenter Associates' Nitin Motwani, Abbhi Capital founder Sankesh Abbhi and a rendering of the site (Photos via Miami Worldcenter, Abbhi)
Miami Worldcenter developer sells 1-acre lot to Abbhi Capital, doubling its site
Miami Worldcenter developer sells 1-acre lot to Abbhi Capital, doubling its site
Terra’s David Martin and renderings of the project (Terra, iStock)
Terra scores $65M loan for Northwest Miami-Dade project
Terra scores $65M loan for Northwest Miami-Dade project
From left: Coral Gables police headquarters at 2801 Salzedo Street, Codina Partners chairman Armando Codina and a view of the new Gables PD building at 2151 Salzedo Street (Google Maps, Codina)
Codina Partners’ plan for Coral Gables rental tower advances with three-way property swap
Codina Partners’ plan for Coral Gables rental tower advances with three-way property swap
Affiliated Development's Jeff Burns and Nick Rojo with a rendering of the Bohemian in Lake Worth (Affialiated Development, MSA Architects)
Affiliated scores $34M construction loan for Lake Worth Beach apartments
Affiliated scores $34M construction loan for Lake Worth Beach apartments
arrow_forward_ios

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

Loading...