32% of Americans Missed Making Full Rent or Mortgage Payment in July
Thursday, July 09, 2020
A record number of Americans missed making a full rent or mortgage payment in July.
Since April, the real estate company Apartment List team has surveyed renters and homeowners about the impact of the pandemic on their employment and their ability to afford their housing.
In early April, the percentage of Americans unable to make a full on-time housing payment jumped to 24 percent, then rose to 31 percent in May. This missed payment rate has since stabilized, dipping slightly to 30 percent in June before ticking back up to 32 percent in July. During the first week of this month, 19 percent of Americans had made no housing payment, while an additional 13 percent paid only a portion of their monthly bill.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAccording to Apartment Lists' research:
- 32 percent of Americans did not make a full on-time housing payment in July, up slightly from 30 percent in June.
- Missed payments continue to concentrate among renters, young and low-income households, and residents of dense urban areas.
- Compared to last month more Americans are concerned about evictions and foreclosures, even as federal and certain local displacement protections are extended.
- Coronavirus continues to simultaneously encourage and discourage moving. Many are likely to move because of declining affordability, while others are staying put because of the health risks associated with moving during a pandemic.
- Renters in large multifamily apartment buildings show higher payment rates than those living in smaller buildings and single-family homes.
The majority of payments missed in the first week of the month are made up with late payments as 89% of respondents reported that they had paid their June bill in full as of the first week of July. This is consistent with the end-of-month payment rate for prior months. Often, those late payments trigger "late fees" further exasperating financial issues.
"July brought a continuation of several trends observed over the previous three months. Renters continue to struggle more than homeowners, however, both groups are widely affected; this month, 36 percent of renters and 30 percent of homeowners failed to make full on-time payments," said Apartment Lists.
"Naturally, younger and lower-income households have more trouble than older and wealthier ones; for those under 30 years old and those making less than $25,000 annually, the missed payment rate exceeded 40 percent in July," said the report. "Missed payments also remain correlated with population density, and in medium- and high-density areas where the early spread of the virus compounded the existing stress of high housing costs, over one-third of residents are still finding it difficult to pay their bills."
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