As pandemic-related rent relief has started to run out, eviction filings have been on the rise across the country—in fact, they’re above their historical averages in half of the 1,059 counties tracked by Legal Services Corp, a federally-funded legal aid group. In combination with inflation, industry experts, housing advocates, and government officials warn the problem is likely to worsen over the coming months.
The End of Eviction Moratoriums and Dwindling Rental Assistance Funds
With moratoriums and rental assistance at an end, we could be reaching the tsunami of evictions predicted early in the pandemic.
During 2020, evictions fell after the federal moratorium was enacted. Although the moratorium was lifted in August 2021, the number of evictions stayed below typical levels in the majority of cities because of the federally-funded rental assistance programs. However, much of the funding for rental assistance programs began to run out this summer. The Treasury Department estimates that out of $46.5 billion, only $7 billion of the pandemic-era rent assistance funding more than 7 million renters rely on is left.
To make matters worse, Americans are struggling with a lack of affordable housing and pessimism over the state of the economy. According to a poll conducted by CNBC in October, 59% of voters anticipate a recession within the next 12 months. Even though the job market remains strong, approximately 7.8 million Americans were behind on their rent in October; of them, 3 million stated they believed they were likely to be evicted within the next couple of months.
The poll also found that 2.5 million people had experienced a rent increase of over $500 in 2022. Although rent increases have slowed with the growing economic uncertainty and inflation, rent prices are still up by 9% nationwide in September compared to average rents in 2021.
Many areas are currently seeing the highest number of evictions in years. In Arizona, Maricopa County had more than 45,000 filings in 2022.
Preventing Evictions at Your Rental Properties
Evictions are unpleasant for all involved. For landlords, they can be extremely costly and time-consuming. In addition, due to the uncertain economic conditions, many renters are delaying moving—which means it may take longer to find qualified tenants than it did in the past.
Although circumstances can change, tenant screening remains one of the best ways to prevent evictions. Credit reports, background checks, and other types of screenings allow you to get a clear picture of an applicant’s background and how financially sound—and responsible—they are. Tenant Screening Center offers a variety of premium tenant screening services that are paid for by your applicants, making them an easy, convenient, and cost-effective way to have peace of mind for your properties. Order your reports today or feel free to contact us at 1-800-523-2381.
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