Housing report

Nearly 10% of US households at risk of losing their homes: report

  • According to the Consumer Financial Protection Bureau, nearly 10% of American households are at risk of losing their homes.
  • The report adds that the housing crisis is “at a level not seen since the peak of the Great Recession in 2010”.
  • Black and Hispanic landlords and tenants have been disproportionately affected.

A new report by the Consumer Financial Protection Bureau pointed out that 11 million American families are at risk of eviction or foreclosure due to financial strains related to the coronavirus pandemic.

That means nearly 10% of U.S. households are at risk, according to the report. In its analysis of the housing market during the pandemic, the CFPB added that about 2.1 million families are at least three months behind on mortgage payments, while 8.8 million renters are behind on the rent.

The report also mentions that as forbearance and deportation moratoriums expire at the state and federal level, the crises are likely to worsen.

“We are working hard to help landlords and renters as the United States begins to turn a painful crisis, caused by the pandemic, into a robust recovery,” CFPB Director Dave Uejio said. said in a press release. “We know small homeowners are also struggling, with many dipping into their savings or using credit cards to get through the pandemic. We want everyone – homeowners and tenants, landlords and mortgage officers – to have the tools they need. needed now to avoid unnecessary evictions and seizures”.

The report adds that the housing crisis is “at a level not seen since the height of the Great


Recession

in 2010, and that American households are estimated to collectively owe nearly $90 billion.

The CFBP report also found that black and Hispanic homeowners were more than twice as likely as their white counterparts to have accumulated late housing payments during the pandemic.

In terms of the tenant market, black and Hispanic households are more than twice as likely to rent as white households, and the eviction crisis is disproportionately affecting these communities.

According to the report, the average late tenant is more than three months behind on rent, and owes more than $5,000 in rent and utilities. CFBP added that tenants have been unable to pay a total of $44.1 billion throughout the pandemic.

There are no policy recommendations in the CFBP’s latest report, but the agency points to advocates calling on the government to set aside $100 billion to help low-income tenants, building on the $25 billion set aside by the federal government under the emergency rental program in December. 2020.