The Mortgage Bankers Association’s (MBA) Research Institute for Housing America (RIHA) found renters were more likely to miss, delay, or make reduced housing payments housing in September and October 2021 than homeowners.
“The economy and labor market continued to improve during the fall months, but the sunset of government support programs, inflationary pressures, and rising COVID-19 cases were all likely factors in the upticks in missed housing payments in September and October,” Gary Engelhardt, professor of economics in the Maxwell School of Citizenship and Public Affairs at Syracuse University, said in a release.
“Renters were three times as likely to miss a housing payment compared to homeowners and appeared to be vulnerable to the expiration of expanded pandemic unemployment benefits. The share of renters who received unemployment fell from 6 percent over the summer to below 1 percent in October.”
The rate of renters who missed, delayed, or made a reduced payment increased from 8.6 percent in July 2021 to 9.6 percent in September, and further still to 10.9 percent in October. Compare these with the homeowner rates: 3.8 percent in July, 3.2 percent in September, and 3.8 percent in October.
“RIHA’s research throughout the pandemic has provided a comprehensive picture for industry stakeholders and policymakers on households’ ability to make their housing statements,” Edward Seiler, RIHA executive director and MBA associate vice president, housing economics, said.
“The overall economic outlook looks brighter but still greatly depends on the course of the virus. Continued job growth and wage gains – especially if they can offset inflation – are key to helping those households that are still facing hardships.”