Millions of Evictions Are a Sharper Threat as Government Support Ends

August 8,2020 | By Erickson Ocasio

Without more federal aid for workers, experts are expecting the largest disruption to the housing market since the Depression. For the 108 million people who live in a rental home or apartment, Aug. 1 was a grim milestone. It marked the first time rent was due after much of the nation’s economic response to the coronavirus had expired. The lapse of expanded unemployment benefits and federal, state and local eviction moratoriums is forcing lawmakers to figure out how to extend those protections. It has also left experts resorting to natural disaster metaphors (“avalanche,” “tsunami”) to describe the scale of potential evictions. Unlike the U.S. economy, which was enjoying the longest expansion on record, housing — specifically rental housing — was troubled before the virus hit, with problems going back decades. A little under four million evictions are filed each year, one in fo

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What will federal aid for unemployed Americans look like after July 31?

July 17,2020 | By Erickson Ocasio

On July 31, the extra $600 per week out-of-work Americans have been receiving as part of the federal CARES Act will be no more. With COVID-19 leading to a fresh round of lockdowns, unemployment still over 11 percent, and an estimated 17.6 million Americans unlikely to return to their pre-COVID-19 jobs, it’s crunch time for both the nation’s leaders and its unemployed workers. In May, the Democrat-led House of Representatives passed the HEROES Act, which would extend the $600 benefit until January 2021. President Donald Trump deemed the Act “dead on arrival” after its passing, but has since changed his tune considerably, signaling that he is at least in favor of more stimulus checks. The HEROES Act is expected to face stiff resistance in the Senate once it reconvenes on July 20. But the Senate has no choice but to do something, says Michael Gregory, head of U.S. economics for BMO Capital Markets. The national unemploymen

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