What is the impact of direct payments on housing?
To prevent a massive wave of evictions during the pandemic, policymakers have provided millions of dollars in rent assistance, passed laws banning evictions, and even enacted mortgage forbearance programs. Additionally, Improved UI benefits and stimulus checks boosted household incomes, making it easier to pay rent or mortgage.
In December, before a stimulus bill was passed, the rates of those who reported difficulty making payments for housing peaked at ten percent (15 percent for those with children). Data showed a slight increase before the US bailout was passed, but overall rates fell to seven percent in April (ten percent for those with children).
However, the May results show that these numbers are increasing rapidly. Twenty percent of homeowners reported to the Census Bureau that the foreclosure was “vvery or fairly likely.
On the rental market, one in four households, reported that eviction is likely within the next two months. In addition, with the rate of people reporting that they are behind on the mortgage, eleven percent, or the rent, fourteen percent, payments have risen beyond their April average of ten percent.
Read our full coverage for more details on the impact of controls on food safety and mental health.
Based on US Census Bureau Household Pulse Survey data