Tags: renters | next | payment | worried | pandemic | virus

Nearly a Third of Renters Worried About Their Next Payment

Nearly a Third of Renters Worried About Their Next Payment
(Andrii-Yalanskyi/Dreamstime)

Thursday, 11 June 2020 04:43 PM

Thanks largely to coronavirus lockdowns, 17% of U.S. renters already couldn’t cover their last lease payment -- but that number is dwarfed by the number worried about making the next one.

About 31% of renters responding to the U.S. Census Bureau’s Household Pulse survey in the five weeks through June 2 said they had “little or no confidence” they can make their next payment on time.

By comparison, 11% of households with a mortgage failed to make their last payment and 16% of the survey respondents said they fear they can’t cover the next one.

This could impact consumer spending and the economic recovery.

“Households who suffered a loss of income due to Covid-19 may be reducing their spending on non-housing goods/services in order to make their rent or mortgage payment,” said Shawn Bucholtz, an economist with the U.S. Department of Housing and Urban Development, which participated in the census project.

Federal Reserve Chair Jerome Powell said Wednesday that the central bank is encouraging lenders to offer customers facing hardships forbearance on their debt payments.

“There’s been a tremendous amount of forbearance on the part of the banks,” Powell said during a virtual press conference. “But those are not decisions that we hold any legal authority to make, and by the way, we have encouraged those decisions.”

© Copyright 2020 Bloomberg News. All rights reserved.


   
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Thanks largely to coronavirus lockdowns, 17% of U.S. renters already couldn't cover their last lease payment -- but that number is dwarfed by the number worried about making the next one.
renters, next, payment, worried, pandemic, virus
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2020-43-11
Thursday, 11 June 2020 04:43 PM
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