Debt Piles Up for Low-Income Renters

Renters who fell behind during the pandemic "face staggering debts," with many teetering on the edge of eviction, writes Stefanos Chen for the New York Times. According to a report from NYU's Furman Center that analyzed low-income New York renter households, "the average rent owed by households with arrears through the year ending February 2021 jumped 66 percent." Additionally, "[t]he share of households that owed more than $3,000 increased 65.5 percent, to 2,059 from 1,244; and the share of households owing $10,000 or more jumped 140 percent, to 672 from 280."

As with other aspects of the pandemic, communities of color have been disproportionately affected. "A recent study of state court data found that predominantly Black and Latino neighborhoods, where a disproportionately high number of Covid cases have been reported, had nearly four times the rate of eviction filings."

"[T]he sharp rise in debt for those who have fallen behind is alarming for both tenants, who could face imminent eviction, and landlords, who are unlikely to recoup a sizable share of rent, because it is owed by the city’s most overburdened renters." New York state's eviction moratorium, meanwhile, is set to end on August 31. A $2.4-billion state Emergency Rental Assistance program is scheduled to start accepting applications in June.