The Pandemic Effect: Landlord Edition

In a recent paper, Elijah de la Campa and Vincent J. Reina assess the impact of the pandemic on private landlords, "who supply the majority of the nation’s lowest-cost rentals." De la Campa and Reina used survey data from 10 U.S. cities "to better understand the impact of the pandemic on landlords’ rental incomes and business practices."

Survey responses show that "the share of landlords who collected 90 percent or more of their potential rental revenue fell 27 percentage points from 2019 to 2020," and "smaller and mid-sized landlords, who had higher exposure to non-payment prior to the pandemic, were more likely to have seen rental revenues drop by more than 50 percent." The authors note that "10 percent of owners with five or fewer units—those most likely to provide affordable units—reported receiving at most half of their rental revenue during the pandemic." The study also found that " renters of color have disproportionately borne the negative impact of landlords’ decisions during the COVID-19 pandemic" with landlords taking more punitive actions against tenants in communities of color.

The results "paint a troubling picture," as the "loss of revenue for our nation’s primary providers of lower-cost housing has real implications for the current and future housing stock." With landlords deferring maintenance, we could also see reduced housing quality and lower lifespans for older buildings.

The authors conclude that "[t]hese dynamics suggest an opportunity for policymakers to help support landlords while also preserving the privately-owned affordable rental stock" through programs that connect funding to affordability requirements, facilitate sale of properties to tenants or socially responsible parties, and address punitive measures such as eviction. "Affirmative federal and local commitments to further fair housing, as well as to communities of color well beyond the pandemic, are essential to address long-standing racial disparities in access to good quality, affordable housing."