Around 750,000 Households Face Eviction in 2021 Following Moratorium Ban: Goldman Sachs

Goldman Sachs economists predict that some 750,000 renter households are likely to lose their homes this year following the Supreme Court’s decision to block the federal eviction moratorium and the slow pace of emergency rental aid delivery.

Basing their prediction on rent delinquency data from real estate companies, federal agencies, and the National Multifamily Housing Council (NMHC), a trade and advocacy group for the apartment industry, Goldman analysts disclosed their prediction in a report released Sunday. It estimates that between 2.5 million and 3.5 million U.S. households are behind on their rent and, when the eviction moratorium expires at the beginning of October, between 1 million and 2 million households will face a higher risk of eviction.

“The strength of the housing and rental market suggests landlords will try to evict tenants who are delinquent on rent unless they obtain federal assistance,” the Goldman analysts said. “And evictions could be particularly pronounced in cities hardest hit by the [pandemic crisis], since apartment markets are actually tighter in those cities.”

The U.S. Supreme Court on Aug. 26 blocked the eviction moratorium enacted by the Centers for Disease Control and Prevention (CDC), opening the door for property owners to evict residents behind on rent. The ruling came after the CDC on Aug. 3 issued a federal moratorium for 60 days, expiring on Oct. 3.

Following the Supreme Court ruling, the NMHC issued a statement saying it agrees with the decision. While the trade group said that it supported a voluntary, short-term halt to evictions to help families struggling amid the pandemic, it argued that a “long-term eviction moratorium was never the right policy.” – READ MORE