Predicted Spike in Evictions May Make Ongoing Pandemic Even Worse
The ongoing coronavirus pandemic has arguably impacted virtually every aspect of our daily lives. Whether you’re working from home or limiting our contact with our loved ones, most of us have had to drastically alter our regular routines in order to stay safe.
But there are some circumstances over which we don’t have control. Millions of Americans have lost their jobs and countless businesses have closed due to this health crisis — and while only 18% of survey respondents cited COVID-19 as a catalyst for moving, that could very well change once the CDC’s moratorium on evictions expires in January. In fact, some estimates show that as many as 40 million Americans could be forced out of their homes when the clock strikes midnight on New Year’s Eve, signaling a rather dark beginning to a year so many had hoped would be better than the last.
As of January 2019, American households already owed $9.12 trillion in mortgage debt. And too many U.S. residents are just one paycheck away from foreclosure or eviction. While the CDC currently has an eviction moratorium order in place (and some states and cities have their own bans on evictions), that order is set to expire once 2021 officially begins. Research by the Aspen Institute suggests that nearly 40 million renters could face eviction over the next several months — which could make the virus even more difficult to control.
The CDC’s order was actually an effort to decrease cases by keeping tenants safely in their homes, rather than potentially exposing family members, friends, or others in homeless shelters. With over 1 billion people without tolerable shelter, it makes sense to allow individuals who meet certain conditions to remain in their apartments and keep shelters from becoming overcrowded. But as the deadline looms and cases continue to rise nationwide, many experts are worried that mass evictions may make a bad situation even worse.
Already, evictions have happened in many states; despite the federal protections in place, both landlords and tenants seem to be confused about what’s allowable by law. Even statewide moratoriums haven’t stopped evictions from happening, which means that an overburdened system is being stretched even thinner.
While a report by global investment and advisory firm Stout estimates that only 14 million American households are currently at risk of eviction, at least 4.9 million of those households are likely to receive eviction notices as soon as the CDC’s order expires. By January, American renters are estimated to be $24.5 billion behind in payments. And because the CDC moratorium applies only to certain individuals, evictions are continuing to take place — and they are almost certain to worsen in the new year. With no real hope of financial assistance from the federal government in sight, and millions set to lose all unemployment benefits on January 1, the future looks bleak for many.
