CoronavirusPolitics & Money

Here’s how much unemployed service-sector employees owe in housing payments, despite benefits

This includes rent and mortgage

Service-sector employees in the U.S. who are currently receiving unemployment benefits due to COVID-19, owe more than $1.7 billion in rent and mortgage payments each month, according to a report from Zillow.

The latest unemployment data, released last week, shows the U.S. unemployment rate at 13.3% in May, down from a record 14.7% in April, as the economy added 2.5 million jobs, according to the Labor Department.

Currently, unemployment benefits created as a result of the pandemic – an extra $600 a week for those who apply – are set to expire on July 31. On Tuesday, the Trump administration announced its opposition to a Democratic-led proposal to extend the extra $600 per week federal unemployment benefit.

When the U.S. began to feel the effects of COVID-19, restaurants and bars across the country were hit hardest, leaving bartenders, servers and other retail trade employees owing more than $1.72 billion in monthly housing payments nationwide.

Despite unemployment benefits, stimulus checks and temporary forbearances, the National Multifamily Housing Council said that 22% of renters in the U.S. paid none of their bill in the first week of April. By the same time in May, the share of renters not paying fell to 20%, after stimulus checks hit bank accounts around April 15.

Thirty-eight percent of renters in Assurant‘s MultiFamily Housing Renters Perspective Study said that they will need rent relief help during the next 90 days, and 42% said they are unsure about their rental stability going forward.

In states like New York, which had its eviction moratorium extended, Zillow said that there is more than $133.5 million in monthly housing payments that are owed by accommodation and food service workers who experienced COVID-19-related job loss. This makes up 46.8% of total housing payment owed by the entire industry.

In smaller states such as Rhode Island, recently out-of-work accommodation and food service workers owe 63.2% of the total monthly housing costs owed by all the state’s workers in this industry.

In 38 states, and the U.S. as a whole, newly unemployed workers in the accommodation and foodservice industry are responsible for more than 15% of total housing payments owed by all workers in the industry in each state, Zillow said.

Leave a comment

Latest Articles

[PULSE] How to manage rental properties during a global crisis

As the current U.S. unemployment rate hovers above Great Depression-Era levels, many property owners are having rent delinquency, leasing and management issues. So, what can an investor do during the current economic situation to protect their asset?

Jul 02, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please