Housing Providers Struggle as Renters Miss Payments
February 24, 2021
Renters are struggling to make payments since the pandemic, but those missed payments are having a serious impact on housing providers, particularly smaller mom-and-pop property owners. Owners still need to pay their mortgages, and tenants’ missed payments are adding up.
About $11 billion is needed monthly to assist the nation’s renters and housing providers, the National Association of REALTORS® estimates at its blog, Economists’ Outlook. “Renters continue to need assistance with 14.5% of renter households reporting they have ‘no’ confidence they can pay next month’s rent or will have rent deferred,” writes Gay Cororaton, senior economist for NAR. Another 16.2% have “little” confidence they can pay rent, Cororaton adds.
Over a six-month period, the cost could jump to about $67 billion needed, NAR says.
About 4.2 million renters are not caught up on rent, accounting for about 53% of the 8 million renter households, NAR says.
©National Association of REALTORS®
“Half of Renters Not Caught Up on Rent Live in One-Family Homes and 2-to-4 Unit Properties,” National Association of REALTORS® Economists’ Outlook blog (Feb. 23, 2021) and “Millions of Tenants Behind on Rent, Small Landlords Struggling, Eviction Moratoriums Expiring Soon: Inside the Next Housing Crisis,” TIME (Feb. 18, 2021)