If Congress doesn’t implement a new eviction ban, three-quarters of a million American households could be evicted later this year, according to new research.
Goldman Sachs estimates that between 2.5 million and 3.5 million households are significantly behind on rent, owing a combined $12 billion to $17 billion to landlords.
Those renters appeared to be safe from eviction until at least October until the Supreme Court last week struck down the Biden administration’s ban on evictions, indicating that further action must come from Congress. At the same time, most state-level restrictions on evictions are scheduled to expire over the next month, which the Goldman Sachs analysts noted in the Sunday night report.
“The end of the eviction moratorium is likely to result in a sharp and rapid increase in eviction rates in coming months unless Emergency Rental Assistance (ERA) funding is distributed at a much faster pace or Congress addresses the issue,” the report said.
Without faster aid or new legislation, Goldman Sachs estimates 750,000 households will face eviction this fall and winter. The Wall Street bank noted that roughly half of all US eviction filings resulted in eviction between 2006 and 2016.
Part of the problem appears to be trouble getting government aid out the door.
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SOURCE: CNN, Matt Egan