One-Third Of US Renters, Homeowners Behind On Housing Payments In August As Federal Aid Stalls

Almost one-third of Americans entered the month of August behind on their housing bills.

ApartmentList.com, an online platform that connects renters with apartment listings, said that 32% of Americans failed to make a full, on-time housing payment in the first week of August -- marking the fourth straight month at that level of nonpayment by renters and homeowners.

More than 20% of these people owed more than $1,000 during the first week of August.

“Late and unpaid housing bills are accumulating, putting a financial strain on many families and deepening concerns of near-term evictions and foreclosures,” the platform stated.

Among renters with unpaid housing bills, 49% have either negotiated or are in the process of negotiating a payment arrangement with their landlord.

Among those with unpaid housing bills, 66% of renters and 65% of homeowners are concerned about facing an eviction or foreclosure within the next six months.

“With the recent expiration of most federal eviction and foreclosure protections and a lapse in expanded unemployment benefits, this insecurity is sure to deepen over the coming weeks,” ApartmentList.com noted.

The platform cited that a stimulus check from the federal government of $2,000 would be enough to clear up unpaid rent bills for 83% of renters who are behind on their payments.

“That said, a one-time payment does little to address the underlying economic crisis causing this problem, so it is likely that housing debt would again accrue as widespread unemployment continues,” the site reported. “As the pandemic rages on, missed housing payments are continuing to pile up.”

But the National Multifamily Housing Council, or NMHC, painted a somewhat different picture – the group said that among apartment households, some 79.3% made a full or partial rent payment by Aug. 6 – a 1.9% drop from the same period in 2019 – but up from to 77.4% in the first week of July 2020.

“Over the past few months apartment residents have largely been able to meet their housing obligations. In no small part, this is due to the enhanced unemployment benefits enacted under the [Coronavirus Aid, Relief, and Economic Security Act] and significant steps by apartment owners and operators to help their residents,” said NMHR chairman David Schwartz. “These unemployment benefits that have proven so important to so many households have now lapsed, meaning greater financial distress for millions and the potential worsening of America’s housing affordability crisis.”

Schwartz added: “While President Trump announced executive orders relating to rental assistance and continued unemployment benefits, it is unclear when and if those resources will be available to families.”

The NMHC urged the Trump administration and Congressional leaders to negotiate a comprehensive coronavirus relief package.

"It is critical lawmakers take urgent action to support and protect apartment residents and property owners through an extension of the benefits as well as targeted rental assistance. That support, not a broad-based eviction moratorium, will keep families safely and securely housed as the nation continues to recover from the pandemic," he said.