At Least 12 Million Households Face Eviction As Moratorium Ends

Authored by Mike Shedlock via MishTalk.com,

The eviction moratorium ends July 31. Millions of households are behind with no confidence in making payments.

With millions of renters at risk Biden Asks Congress to Extend Federal Eviction Moratorium

State and local governments have struggled to distribute $47 billion in federal money aimed at helping tenants who can’t pay rent because of the pandemic-triggered downturn, leaving many people at risk of being forced out of their homes when the moratorium expires.

Just $3 billion of the aid authorized by Congress in December and March had been delivered to landlords and tenants as of June 30, the Treasury Department said in a report last week. 

Meanwhile, many landlords have been squeezed because they have been unable to collect rent but remain on the hook for taxes, maintenance and other bills.

The moratorium, which originated from an executive order signed by then President Donald Trump last August, shields tenants who have missed monthly rent payments from being forced out of their homes if they declare financial hardship. They still owe the back rent.

The moratorium was originally set to expire Dec. 31, 2020, but Congress extended it until late January, and the CDC has extended the order three times.

in June, the Supreme Court rejected an emergency request to clear the way for evictions after the Biden administration said it would extend the moratorium for one final month. Justice Brett Kavanaugh voted with the 5-4 majority to keep the moratorium in place. However, he issued a one-paragraph concurrence saying he believed the moratorium was unlawful, but was willing to leave it in place for July. “In my view, clear and specific congressional authorization (via new legislation) would be necessary for the CDC to extend the moratorium past July 31,” he wrote.

Census Department Data

I created the lead chart from a Census Department Data Feed. 

Here are a few more charts.

Confidence in Ability to Pay Mortgage 

Mortgage Payment Status

Rent Payment Status

These numbers are way understated. 

Q: How do I know that?

A: Every chart is missing 72,166,927 households in which the Census Department does not have tenure data. 

The total is 50,922,215 Renters + 127,127,307 Homeowners + 72,166,927 Unknowns. 

Some of those unknowns are not current or in trouble even if they are current.

Four-Point Synopsis 

• 7.43 million renters are not current

• 5.95 million homeowners are not current

• 8.71 million homeowners have little or no confidence in ability to pay their mortgage

• 12.71 million renters have little or no confidence in ability to pay their rent

Significant Other Details

• The above numbers are undoubtedly understated because the status of 72.17 million households is unknown.

• Rent plus back rent is due August 1.

• There will be no more rent moratoriums without Congressional action as per Supreme Court Justice Brett Kavanaugh.

• On September 1, Federal unemployment benefits expire. 

US 2nd-Quarter GDP Exceeds Pre-Pandemic High But Huge Concerns Remain

Earlier today I reported US 2nd-Quarter GDP Exceeds Pre-Pandemic High But Huge Concerns Remain

This has been a tale of two recoveries. Those with assets and jobs, and those without. 

Many millions of people will not see this as an end to the recession.

Prediction Question

Difficult to say. No time to get anything passed in Congress and the Supreme Court has spoken.

Congress has since April to fix it but didn’t.

But states are sitting on $44 billion unspent rent subsidies.

How far does that go?

I don’t know. Thanks for the question. https://t.co/VUyPFmOzqt

— Mike “Mish” Shedlock (@MishGEA) July 29, 2021

What, Me Worry?

Fed Says Inflation Might be Higher and More Persistent Than They Expect

Making matters worse for everyone struggling, the Fed is hell bent on increasing inflation. 

For details, please see Fed Says Inflation Might be Higher and More Persistent Than They Expect

And finally, the Progressives in congress want an energy tax that will raise the price of literally everything.

For discussion, please see The Stagflation Threat is Very Real but Congress Holds the Key

Wow. What a setup!

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