August brings no sign of the rent apocalypse

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

TRD 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
Grant Cardone

Lawsuit seeking class action status accuses Grant Cardone of misleading investors

Lawsuit seeking class action status accuses Grant Cardone of misleading investors
Wynwood Works rendering and Udonis Haslem (Credit: Bobby Metelus/Getty Images)

Magellan Housing and Miami Heat star Udonis Haslem to build Wynwood apartment project on city-owned land

Magellan Housing and Miami Heat star Udonis Haslem to build Wynwood apartment project on city-owned land
Kelly Kite and 690 Northwest 13th Street (Google Maps)

More multifamily may be coming to Overtown

More multifamily may be coming to Overtown
Grant Cardone and 3300 Port Royale Drive North, Fort Lauderdale (Credit: Google Maps)

Grant Cardone nabs waterfront Fort Lauderdale apartment complex

Grant Cardone nabs waterfront Fort Lauderdale apartment complex
Jeff Ardizon and Robert Suris, with a Soleste NoMi Beach rendering (Credit: The Estate Companies)

Estate Companies plans Soleste apartments in North Miami Beach

Estate Companies plans Soleste apartments in North Miami Beach
1327 Northwest Third Avenue with Burke Construction CEO Anthony Burke and Boston Capital CEO Jack Manning (Google Maps)

Overtown affordable housing complex delays lead to legal battle

Overtown affordable housing complex delays lead to legal battle
Jeff Ardizon, Principal, The Estate Companies, and Robert Suris, Managing Principal, The Estate Companies, with a Soleste Spring Gardens rendering

Estate Companies scores $36M construction loan for Soleste Spring Gardens

Estate Companies scores $36M construction loan for Soleste Spring Gardens
From left: Jeff Ardizon, Robert Suris, Tony Castro, and Dev Motwani, with a rendering of the project

Developers advance plan for Dania Beach multifamily project

Developers advance plan for Dania Beach multifamily project
arrow_forward_ios

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

Loading...