Research Shows Impact of Missed Rent Payments
Recently released research from the Mortgage Bankers Association's Research Institute for Housing America shows that 8.5% of renters (2.82 million households) missed, delayed or made a reduced payment in September. The research also shows the critical role property owners play in helping renters:
- 11.0% of renters missed one payment over the two quarters, 4.0% missed two payments, 2.8% missed three payments, and 3.8% missed four or more payments.
- 13% of renters received permission from their landlord to delay or reduce their monthly payment (by week).
- In aggregate, rental property owners lost as much as $9.2 billion in third-quarter revenue from missed rent payments
Another interesting data point: the percentage of renters receiving unemployment benefits rose from 3% at the beginning of April to 7% by the end of September.
Here's a little background on the research:
RIHA's research contains data from an innovative household survey from the Understanding America Study (UAS), an internet panel survey of over 8,000 households specially tailored to study the impact of the pandemic. Authored by Engelhardt and Michael D. Eriksen, Associate Professor of Real Estate at the University of Cincinnati, the study provides close to real-time economic data on the rapidly evolving financial consequences of the pandemic by following the same set of households from before the outbreak through the end of September 2020.