Prepare For A Tidal Wave Of Evictions & Homelessness
By Tyler Durden/Activist PostJune 30, 2022
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A tidal wave of evictions could be ahead. More than eight million Americans are behind on rent payments, and the CDC's series of eviction moratoriums has long since expired. In other words, the government safety net to keep people off the streets is gone.
With no federal eviction moratorium in place, 8.4 million Americans, or about 15% of all renters, who are behind on rent, are at risk of being evicted. The new figures were part of a Census Bureau survey conducted between June 1 to June 13 of households and was first reported by Bloomberg.
The survey found that 3.5 million households were somewhat likely to leave their rented spaces (homes/apartments) within the next two months because of an eviction. Most of these folks are of the working poor class and situated in large metro areas from New York to Atlanta, where the cost of living, including shelter, food, and fuel, has skyrocketed.
About 6.7 million households said their rents increased, on average, $250 per month over the last year. The increase doesn't sound like a lot but remember that many of these folks are being crushed under the weight of the highest inflation in four decades. Their credit cards are maxed out, and savings are drained as wages fail to keep up with soaring consumer prices.
Even in some of the most prosperous areas of New York renters are feeling the pain.
Living in a spacious apartment with no roommates in Midtown Manhattan is one of the hallmarks of feeling like you've made it in New York City. But that era is over for many as skyrocketing rents and wages failing to outpace inflation have sparked a housing affordability crisis.
Bloomberg cites a New York City Department of Housing Preservation and Development report that found only 23% of full-time workers in the city can afford median rent.
The city's report used the median asking rent of $2,750 for vacant and available units in 2021, and 2020 salary data showed that only 23% of full-time workers in New York made over $100K.
If renters followed the 30% rule, a popular standard for budgeting rent that says a maximum of 30% of your monthly income before taxes should be spent on rent, then those making over $100K could afford the 2021 median rent was only 23% of all workers.
Affordability worsened this year as appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate revealed median rents in May topped $4,000 for the first time.
Matthew Murphy, the executive director of the NYU Furman Center, said the "incredibly tight rental market" and robust demand have pushed rent prices sky-high, adding: "The inventory and supply has not kept up with intense demand."
Compound the affordability crisis in the rental market with soaring food and energy costs, and many New Yorkers are struggling to survive in the worst inflationary period in four decades.
The dream of living in a spacious apartment alone in Midtown is over, as some New Yorkers might have to find roommates to help pay rent.
This shocking revelation is a reminder that today's current economic backdrop, which some say is stagflationary, could quickly morph into recession and surging joblessness.
So who will the Biden administration blame for the coming tidal wave of evictions? He can't keep blaming "Putin."
Originally published at Activist Post - reposted with permission.