The U.S. may be facing the most severe housing crisis in history, according to a report published by Aspen Institute Friday.
The report says that up to 40 million Americans could be at risk of eviction this year.
"Many property owners, who lack the credit or financial ability to cover rental payment arrears, will struggle to pay their mortgages and property taxes, and maintain properties," the report said. "The COVID-19 housing crisis has sharply increased the risk of foreclosure and bankruptcy, especially among small property owners; long-term harm to renter families and individuals; disruption of the affordable housing market; and destabilization of communities across the United States."
The report also suggests that communities of color -- especially Black and Latino Americans -- are hardest hit by this eviction crisis, which constitutes 80% of people facing eviction.
The ongoing coronavirus pandemic has triggered unprecedented job loss in the country which is why people are finding trouble keeping up with their finances. More than 50 millions Americans have filed for unemployment since the pandemic hit the U.S. in March.
The unemployed people will also have hard time as they are solely relying on state benefits since the $600 federal benefit expired in July. As per the U.S. Labor department, an average person is eligible for $378 a week in unemployment benefits.
The $600 federal benefit is at the center of debates over a new coronavirus stimulus package, as the Trump administration is not in its favor of extending the relief.
According to the National Bureau of Economic Research, two-thirds of laid-off workers are eligible for benefits in excess of their usual paychecks.
“You’d make more money if you don’t go to work. We don’t want to have that. We want to have people get out, and we want to create a tremendous incentive for people to want to go back to work," Trump told Fox Business Network on July 1.
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