The Rent Is Due Part 1

According to a number of different studies and reports, the amount of unpaid rent by December 2020 could reach billions of dollars.

This is the result of the accumulation of job losses, furloughs, closed businesses, shutdowns and lockdowns.

According to some research, it is estimated that 1.34 million rentals will be behind in their rent as a result of the pandemic. This translates into approximately 4.2% of all renter households. The households are estimated to owe $7.2 billion in rent by December, which averages out to about $5,400 per household.

The numbers vary widely: anywhere from 2.8 million adults to 40 million Americans.

Up until this point, the unemployment payment, which includes the CARES Act bonus and other Economic Impact Payments, including stimulus checks, have provided some relief to those individuals who had lost their jobs due to the pandemic.

A Closer Look
According to one report, approximately 20%, or 1 in 5 New York City tenants, did not pay their rent in September. Much of the information that agencies in government offices are using to navigate can only be anecdotal at times, and general at best. In New York City, vacancies continue to increase, and rents are falling but not dramatically.

The concern regarding New York City’s real estate health is expecting some sort of adjustment at the very least, or even a complete transformation due to the fact that city rentals and rental prices continue to head down, exacerbated by the exodus of high-paid professionals who paid large premiums in order to have proximity to the jobs that have paid them handsomely.