There Is a Rent Increase Crisis
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efore Covid hit, the United States was in the middle of a housing crisis. One that got worse when the pandemic hit, an estimated 30 to 40 million people in America were facing the risk of eviction. In what is called ”the Covid-19 housing crisis”, there has been an increase in foreclosures and bankruptcy—especially for small property owners. Conversely, there have been long-term harm to renter families and individuals, disruption of the affordable housing market, and destabilizing communities across the United States. During the pandemic, countless studies have been done, analyzing the pandemic’s impact on public health and the economic depression that has hit renters and the housing market. Studies have shown that Covid-19 has led to numerous job losses that have meant that many people in the United States cannot make rent payments. According to research, more than 20 million renters live in households with a Covid-19 related job loss. In July and March this year, the unemployment rates were anywhere between 11.1 and 14.4 percent. With communities of color experiencing job losses at higher rates than their White counterparts. Job loss has been made worse by the recent expiration of pandemic unemployment insurance. Late last year, experts predicted that communities of color would be the worst hit when moratoriums run out, especially because communities of color are twice as likely to be renters than the White population and are more often than not from lowincome earners and are rent-burdened. With the economy recovering, and eviction 20 l
moratorium, tenants are anxious as rent continues to rise. In Q3 of 2021, rent rose at 10.3 percent annually in professionally managed apartments, according to data from RealPage. The data analytic firm data showed that vacancy rates dropped below 3 percent for the first time in three years. In a shocking turn of events, adjusted rents rose by $150 from the beginning of the pandemic to $1,580. However, these rents do not consider the prices of units owned by smaller landlords—the more affordable units. In October, national rent prices went up both short-term and long-term, with both one-bedroom and two-bedroom apartments increasing by 20 percent year-over-year each. For a one-bedroom home, the rent was $1,660, up 7.7 percent from last month. The rent for a two-bedroom home was $1,964, up 7.1 percent from the prior month. Nationally, about 90 percent of all states experienced a rent increase for both onebedroom and two-bedroom homes. Irvine CA, Santa Ana CA, Scottsdale, AZ, and New York, NY experienced the highest year-over-year rent increases. On the other hand, Huntsville, AL, Durham, NC, and Philadelphia, PA experienced year-over-year price decreases. The rapidly increasing rents are frustrating the effectiveness of emergency rental assistance— the only remaining federal tool that can help struggling renters. Landlords amidst the housing boom rush to sell their buildings, failing to renew their tenants’ leases. Many attributed their decision to the red tape that prevented them from accessing the federal rental assistance program. THE POWER IS NOW MAGAZINE | DECEMBER 2021
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in America Pressuring People at The Risk of Eviction
