By Beshoy Shokralla
The COVID-19 pandemic has exacerbated preexisting vulnerabilities in the rental housing market and created a dire economic situation for both renters and small landlords. Prior to the pandemic, the poorest 20% of households were spending more than half of their income on housing costs with little to no savings.[1] Many renters who faced evictions often owed less than $600.[2] Now, due to the severe job losses brought by the pandemic, an estimated 30-40 million renters could be at risk of eviction.[3] The Federal Reserve Bank of Philadelphia separately estimates that of 7.5 million renter households with at least one worker who has experienced some unemployment, 1.34 million renters will owe $7.2 billion in rent by December 2020.[4] That’s approximately $5,400 in rent-related debt for each household. This burden does not only affect renters, as many small landlords have also reported feeling the pressure. One survey conducted by Avail[5], an app that helps small landlords manage their property, and the Urban Institute found that about 30% of respondent-landlords have felt increased pressure to sell their properties due to the strain that the pandemic has caused.