Sam Chandan, Silverstein Chair at the NYU Schack Institute of Real Estate and Chairman of Chandan Economics, writes in Forbes:
The resilience of the professionally managed segment of the apartment market, where rent payment rates remain close to pre-pandemic levels, threatens to obscure the importance of renewed protections and the enormous challenges confronting the most income-constrained renters. As of mid-July, 30% of households with incomes below $25,000 had missed or deferred the prior month’s rent. Across all renting households, more than 20% missed their last rent payment, a significantly higher share than for the subset of professionally managed properties, which are typically newer, more urban, larger in unit count, and offered at higher price points.
Absent the financial support of the CARES Act or clear timing for new benefits, millions of families that met their rent obligations in the initial months of the pandemic will join the ranks of families seeking relief or at risk of eviction. The impact on broader housing market stability may be substantial. Of immediate concern, small landlords face an uphill battle in fulfilling their mortgage and property tax commitments, irrespective of whether they negotiate rent deferments and discounts or pursue evictions in an environment of weakened apartment demand.
For the full column, visit the Forbes website.