According to the website Business Insider of the United States on the 9th, millions of Americans are currently unemployed and owe thousands of dollars in rent.
The federal government’s eviction moratorium will expire at the end of this month, while unemployment benefits of $600 a week will be suspended. As the holiday season approaches, a large number of renters in the United States fear that they will be evicted and displaced. However, the hope of redemption is slim.
The Washington Post reported that Moody’s Analytics found that nearly 12 million renters in the United States will owe an average of $5,850 in rent and utilities by January next year.
Mark Zandi, chief economist of Moody’s, previously estimated that rent arrears across the United States may total $70 billion by next year, making it difficult for landlords to pay mortgages, property taxes and other expenses.
The report pointed out that the expulsion order was imminent and the overall outlook was bleak. A November survey by the U.S. Census Bureau found that about 5.8 million Americans, roughly the size of Singapore, are expected to face expulsion in the coming months because they are unable to pay their arrears of rent.
Other forecasts are more serious. Investment banks and consulting firm Stout estimates that up to 8.4 million rental families, or 2010.000, may receive eviction applications by January next year.
This is about the same as the population of Florida as a whole. According to the Aspen Institute, the number of people at risk of eviction is even higher, between 30 million and 40 million.
The eviction reprieve, which currently provides protection for rent default, expires on January 1, while unemployment benefits that sustain 12 million Americans will expire on December 26.
Congressional lawmakers are currently working on a bipartisan $908 billion economic stimulus bill, which includes a weekly federal unemployment benefit of $300 from January to April, and $25 billion in rent relief. However, some experts said that this amount is not enough.
At least the bill can provide some relief, but the legislative process is still at a standstill.
Senate Majority Leader Mitch McConnell refused to support the $908 billion bill on Monday, even as confirmed cases of the novel coronavirus soared and the epidemic continued to hinder the economic recovery.
“If we lose faith in the government’s support of us, the economic damage caused by this pandemic will be many times worse… The reality will be very dark and people will lose their homes in the deep winter of the pandemic,” Zandy said.
U.S. President-elect Biden has previously said that he will sign an executive order to extend the eviction moratorium, and even expressed support for rent relief, but he will not take office until January 20 next year.
The Washington Post said that for the interests of about 20 million Americans who receive unemployment assistance, their interests are at stake. Weekly income has been decreasing since August, making it harder for them to pay their bills.
Unless the U.S. Congress takes timely action, the relief for about 12 million unemployed people will be completely cut off by the end of this year.
The report also said that as the number of confirmed cases of the novel coronavirus hit an all-time high, the economic recovery has stagnated, and employment opportunities remain scarce.
In November, only 245,000 jobs resumed in the United States, the slowest rate since the recovery began. Data show that restaurants and retailers in the United States are laying off workers, and more small businesses are closing down.