FAST FIVE: "We're Screwed": The Worst Months For Both Renters And Landlords Still Lie Ahead

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“We're Screwed”: The Worst Months For Both Renters And Landlords Still Lie Ahead Tyler Durden Sat, 08/01/2020 – 22:30 Rent has barely trickled in across the US over the last couple months as the country continues to grapple with a decimated economy as a result of the coronavirus pandemic.

This means that 12 million renters could face eviction over the next four months.

In places like New York and Houston, more than 20% of renters say they have “no confidence” in their ability to pay rent next month.  John Pollock, staff attorney at the Public Justice Center, commented: “You'd have to go back to the Great Depression to find the kind of numbers we're looking at right now. There's almost no precedent for this, which is why it's so scary.” If he thinks the economic numbers are scary, he should look into how the Fed is trying to paper over them – that's even scarier.

About 11 million renters spend at least half of their income just keeping a roof over their head, Bloomberg writes.

Unemployment benefits, which were hiked by $600 per week during the pandemic, also remain an unknown.  One analysis says that landlords could wind up losing more than $22 billion in rent over the next four months as a result of the economy. Chuck Sheldon, who manages about 1,650 apartments in New Mexico has said that the $600 unemployment boost was a “huge” part of him still being able to collect most rents on time.  Mary Cunningham, vice president of the Metropolitan Housing and Communities Policy Center at the Urban Institute, said: “If Congress doesn't do anything, I think we are in for a dark fall and winter.” John Pawlowski, a senior analyst at real estate research firm Green Street Advisors, has a different take.

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