Fewer People Pay Their Rent on Time in July

Mish

The percentage of people paying rent so far this month fell 2.3% to 77.4%. Data is as of  as of July 6.

The NMHC  reports Fewer People Paying their Mortgage.

The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker found 77.4 percent of apartment households made a full or partial rent payment by July 6 in its survey of 11.4 million units of professionally managed apartment units across the country.

This is a 2.3-percentage point decrease from the share who paid rent through July 6, 2019 and compares to 80.8 percent that had paid by June 6, 2020. These data encompass a wide variety of market-rate rental properties across the United States, which can vary by size, type and average rental price.

It is clear that state and federal unemployment assistance benefits have served as a lifeline for renters, making it possible for them to pay their rent,” said Doug Bibby, NMHC President. “Unfortunately, there is a looming July 31 deadline when that aid ends. Without an extension or a direct renter assistance program, that NMHC has been calling for since the start of the pandemic, the U.S. could be headed toward historic dislocations of renters and business failures among apartment firms, exacerbating both unemployment and homelessness.”

This is hardly surprising but the information is incomplete.

Questions Abound

  • How many made a partial payment? 
  • How many normally make partial payments? 
  • Will there be an extension on July 31?

Unemployment Claims

All Continued Claims in 2020 July 1

Continued claims are a disaster as noted in Unemployment is Much Worse Than it Looks.

Tomorrow we have more claims data and I will update my charts.

Mish

Comments (39)
No. 1-12
IA Hawkeye in SoCal
IA Hawkeye in SoCal

I certainly hope everyone is trying their best in this situation. It takes years and decades to build a life, a home, and a family and nobody wants to see that sort of status quo ruined.

tokidoki
tokidoki

At this point, Dow 50 million is getting to be my base case.
The market loves this.

ToInfinityandBeyond
ToInfinityandBeyond

More fairy tales coming tomorrow when the claims data is released.

Bam_Man
Bam_Man

Isn't all of this exactly what you would expect to see in a slow-motion socio/economic collapse?
And how very convenient, that there happens to be a virus pandemic to blame it all on.

numike
numike

I thought we built a wall for this?? oh wait never mind
Mexico border towns try to stop Americans crossing amid Covid-19 fears
Townspeople block road to beach resort popular with US tourists as cases surge in states including Arizona https://www.theguardian.com/world/2020/jul/08/mexico-border-towns-stop-americans-crossing-covid-19-coronavirus

Zardoz
Zardoz

Well, that does it... time to start squatting in my rental.

TimeToTest
TimeToTest

We see these stories daily but the true reality of what is happening is yet to set in.

Most humans have a somewhat short timeframe they look at life. When we start looking off into the future at the path we are on things are not good.

We are looking at 8.6 million rental evictions @ 20% eviction rate. That’s 30 million people homeless.

Christmas is not going to be very festive for many many Americans this year even putting covid aside.

anoop
anoop

smart move by renters. this doesn't mean they don't have money. with evictions on hold, they might as well stop paying rent. there's a lot of talk of rent forgiveness, and it seems like not paying rent is a smart move. again, this doesn't mean the renter couldn't afford rent. it just means they chose to not pay.

ToInfinityandBeyond
ToInfinityandBeyond

Surprise, surprise. Futures are not off to the races this morning. I am guessing today’s claims number is not so good. Can’t keep pushing out fantasy data forever. The one thing that has been consistent about this Trump administration is market front running ahead of any positive economic news.

Tony Bennett
Tony Bennett

When the govt dole / forbearance / moratorium ends ... lenders / landlords get nervous. Very.

Jojo
Jojo

Not everyone is getting absolved against paying rent. There was a story on NPR the other day about people getting evicted in South Carolina.


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