The economic impact of the coronavirus pandemic resulted in nearly one-third of U.S. renters failing to pay their April rent on time. Now, with the May due date right around the corner, financial experts say the problem will likely only get worse.
In spite of temporary bans on evictions in some states and stimulus money that allows landlords to offer tenants financial breaks, housing advocates say the lifelines aren’t enough; they’re asking lawmakers to call for the cancellation of rent for 44 million rental households in the U.S. until the economy begins to improve. However, owners of rental units — who have been just as affected by the economic fallout from the pandemic as their tenants have been — say they can’t afford to foot the bill.
The solution, advocates say, is for the government to cover costs by paying rent directly to landlords. While that may solve the problem, financial experts estimate the cost to do so would be approximately $66 billion a month. Moreover, it’s unlikely such a plan could be put into place before May 1st, they say.
Does a temporary ban on evictions mean a lot of people are going to be ousted as soon as the ban is lifted? Are tenants and landlords both victims in this issue?
