The eviction moratorium is coming to an end. Several courts have found the nationwide order to be unconstitutional, while improving health conditions no longer support the need for stopping evictions to limit the spread of disease. Rent relief measures have so far been insufficient. Further, many tenants have realized that the moratorium will not last forever and have already moved or "self evicted," leaving thousands of dollars of rent unpaid. Working from home or simply spending more time at home has led to an increase in damage, wear and tear, and utility costs for housing providers.
Tenants and housing providers alike have been left scratching their heads as to why more help has not been provided to the industry, especially when other industries have been given loans and grants to maintain and even grow their businesses. We continue to see an unmet need in supporting housing providers who have been asked to house the American public for free. How will it all end?
The precise resolution is unclear that the present time, but without government intervention, it will almost certainly involve evictions resuming, higher rents, decreased housing quality, and higher taxes for single family property owners. These unfortunate outcomes are not unavoidable. We believe that the time is now for America to invest in its multifamily housing infrastructure. Direct grants or sponsored renovation of multifamily housing would provide jobs and begin to stabilize the nation's housing supply. Further, we believe that a rent incentive program where the government would subsidize rent to 120% of market rent for the next 10 years would help to stabilize the industry. Additionally, creative incentives could be used to incentivize housing providers to accept tenants with adverse rental history that occurred during the pandemic for example by increasing the rent subsidy to 130% of market rent.
This is the time for creative and bold ideas. We can only hope that our leaders will see the need and opportunity that is presented.