Although the severity of the pandemic is decreasing, a lot of the destruction it leaves in its aftermath will take years to rebuild and reaffirm. One immediate threat, however, is the increase in rents. The median rent has already increased as the economy is improving. However, evictions are also looming ahead as the courts have refused to continue to allow the eviction ban that came into force during the pandemic.
According to the U.S. Census Bureau, vacant rentals have seen a huge rise in monthly charges in March by $185 a month in comparison with the rates in March 2020. In April, rents increased by 1.9 percent. This percentage of increase has been the most since rents rose almost five years ago in 2017.
Poor families are the ones who generally rent accommodations. They are also less likely to be earning more as the economy has seen positive growth with better paying jobs helping to improve it.
Low-income families spend up to 40 percent in rent. With the increase in rents across the nation, they are bound to suffer the consequences of increased rentals.
Another blow to their livelihoods is a recent decision by the court. The CDC’s national moratorium protected tenants from being evicted. A federal judge has ruled that the agency has exceeded its authority and has ruled in favor of homeowners.
As per the Mortgage Bankers Association, almost 8 million renters, which is roughly close to a quarter of the American who are tenants, have missed at least one payment last nine months of 2020.
In the beginning of the pandemic high-end properties in Manhattan and other big cities saw a fall in rent during March 2020 but the rates were evened out by the rise in rentals in other cities and towns and the national prices were steady. However, rentals are now increasing across the length and breadth of America.