Giving Compass' Take:
- Renters in the United States who are still unemployed due to the pandemic still require rental assistance, and most likely will need it long-term.
- How are donors thinking about supporting individuals that need to pay rent? Are there long-term strategies and planning for rental assistance available?
- Read how local leaders can prioritize scarce rental assistance resources.
What is Giving Compass?
We connect donors to learning resources and ways to support community-led solutions. Learn more about us.
For renters struggling because of the pandemic, the July 31 expiration of the Coronavirus Aid, Relief, and Economic Security (CARES) Act supplemental unemployment benefits posed a challenge. Without that $600 weekly supplement, households experiencing job loss face a greater rent burden (paying more than 30 percent of pretax income toward housing).
But on September 4, the US Centers for Disease Control and Prevention (CDC) issued a national eviction moratorium, a welcome relief for these renters. And last week, Speaker Pelosi and Treasury Secretary Mnuchin resumed discussions around the contours of a relief package. We’ve updated our estimates to understand how much rental assistance is needed for those who are still rent burdened, as many will be at risk when the moratorium expires on December 31, and others are facing eviction in spite of the national moratorium.
The economic situation has improved since spring. Our estimate of the number of renter households in which at least one member experienced a job loss decreased from 8.9 million to 5.3 million. This estimate does not include other effects on wages (PDF), such as reductions in hours. We estimate 68 percent of renter households that experienced a recent job loss are rent burdened when receiving only state unemployment insurance. Receiving $300 in weekly supplemental federal unemployment assistance reduces rent burden among those households to 53 percent, and resuming the $600 per week benefits from the CARES Act would reduce it to 39 percent.
Despite the slight economic improvement, the need for rental assistance is more pressing than ever. The $300 federal supplemental assistance authorized through the president’s executive order is ending in some states. Renters who have not regained employment are likely to need longer-term assistance to stay housed, as many jobs are unlikely to return as the economy recovers.
Read the full article about renters and unemployment by Aaron Shroyer, Kathryn Reynolds, and Sarah Strochak at Urban Institute.