NEW YORK–One-third of Americans did not make a full, on-time housing payment in July, up slightly from 30% in June, according to a new survey. Missed payments continue to concentrate among renters, young and low-income households, and residents of dense urban areas, the survey, conducted by Apartment List, found.
The missed payment figure is a new high in the survey conducted by the company.
“The continued economic hardship is having serious implications for housing security. For the fourth straight month, a historically high number of renters and homeowners were unable to pay their full housing bill,” according to Apartment List, which is an online rental platform.
The company said it has been surveying renters and homeowners about the effect of the pandemic on their employment and their ability to afford housing. In early April, the percentage of Americans in the survey who said they were unable to make a full on-time housing payment jumped to 24%, then rose to 31% in May.
“This missed payment rate has since stabilized, dipping slightly to 30% in June before ticking back up to 32% in July,” the company said.
“During the first week of this month, 19% of Americans had made no housing payment, while an additional 13% paid only a portion of their monthly bill.”
Other Findings
Among the other findings:
- The company said it continues to be the case that the majority of payments missed in the first week of the month are made up with late payments, with 89% of respondents reporting that they had paid their June bill in full as of the first week of July. This is consistent with the end-of-month payment rate for prior months.
- Renters continue to struggle more than homeowners, however both groups are widely affected. In July, 36% of renters and 30% of homeowners failed to make full on-time payments. “Naturally, younger and lower-income households have more trouble than older and wealthier ones; for those under 30 years old and those making less than $25,000 annually, the missed payment rate exceeded 40% in July,” the survey found.
- Missed payments also remain correlated with population density, and in medium- and high-density areas where the early spread of the virus compounded the existing stress of high housing costs, over one-third of residents are still finding it difficult to pay their bills.
- “While eviction protections today vary dramatically from place to place, our survey shows widespread and growing concern about housing insecurity,” Apartment List stated. “From June to July, the share of renters who are either ‘very’ or ‘extremely’ concerned about being evicted rose from 18% to over 21%. Similarly, the share of homeowners concerned about foreclosure ticked up from 14% to 17%.”
- Apartment List reported that according to last month’s survey, the financial fallout from the pandemic is simultaneously encouraging and discouraging moving. “Loss of income has left some households with no choice but to move to a more-affordable home. For others, the costs associated with moving now seem overly burdensome, leading them to stay put,” the company said in its analysis. “We also find that the virus itself is continuing to have a major impact on moving plans, with many reporting they are less likely to move because they do not believe it is safe to do so. Meanwhile, the opportunity to work remotely is inspiring some to consider locations that, prior to the pandemic, were not feasible because of work constraints.”
- The share of Americans who said they are more likely to move this year due to the pandemic increased to 21% from 17%, while the share who say that they are less likely to move increased to 33% from 30%. Health risks continue to be the biggest factor discouraging moves, and the percentage who cited safety concerns rose to 44% from 37%. As for those considering a move, the opportunity to work from home is becoming more of a driver. Twenty-three percent said it’s playing a role in their decision, up from 19% last month, the company said.