Rent cliff in July looms as eviction moratoriums expire

The U.S. economy has lost more than 14.7 million jobs since nationwide lockdowns began in March. For more than half of these Americans, their largest expense is their monthly rent — a bill that was already growing before the pandemic.

A new study from the Urban Institute shows more than 8.9 million households are now “rent-burdened,” meaning they’re spending more than 30 percent of their income on rent. That’s nearly double pre-pandemic estimates, which put the number of burdened households at about 5 million. Once eviction moratoriums end in July, these renters are at risk for losing their homes.

For now, federal assistance has kept things stable: The Urban Institute analysis showed that state unemployment insurance and the CARES Act’s weekly $600 supplement have succeeded in keeping renters in homes.

But weekly supplemental payments are scheduled to end in July, and evictions will be legal again soon after, leaving low-income households vulnerable to a housing crisis.