Those that need low cost housing will be hurt the most in the mid-long term. This will have a detrimental effect on the housing stock and concentrate ownership in fewer corporate real estate outfits. Prices will rise.
So obviously there could always be unintended consequences, but the order is designed to not be a “rent free” option for everyone. What the order says is that if you are unable to make rent, you have to affirm to your landlord that you are unable to pay due to lost income or medical expenses, you’ve made a best effort to find a way to pay and if evicted you would likely be homeless. Then your landlord can challenge your claims in court.
Yeah, which is why this will drive small landlords out so that the majors can scoop up their properties on foreclosure. There’s no way a small landlord will be have the means to meet that burden of proof.
I think the details are still somewhat murky (which is absolutely a criticism I have with the way Trump did this), but it seems like tenants would have to provide evidence that they have no way to make rent, rather than the other way around. I don’t think burden of proof would apply here as it would in a criminal trial.
Yeah, unless there is some sort of protection for landlords as well, this could end up as just another massive consolidation of wealth to the wealthy.
You know who does have money right now? The wealthy, and they don’t really have that many places to park it. So, when a landlord goes months without receiving any rent, and so is not able to make his mortgage payments, that real estate will be snatched up by investors and speculators.
I know people that own a single apartment building, or a duplex that they rent out the other side, or even a couple houses that they rent that are struggling right now.
Big commercial apartment complexes will probably be fine, it is all the little guys that will be hurt.
It does help with the short term issues of evictions and homelessness, but it is going to cause long term damage to the real estate market.
When the moratoriums end, which if Trump wins he will have no reason to extend them, renters will be faced with having to pay up months of back rent or be evicted by new landlords who may not have the same relationship that they had with the old.
If Democrats win, it’s going to be a mess trying to fix everything, if it can be at all. The properties will already be owned by larger investors who are motivated to get rid of the current tenants and raise rents.
The best way to keep people in their homes is to ensure that they have the money to stay in their homes. Anything else is a stopgap that kicks the can down the road and makes the problem worse.
Thank you for the cites. I’ve been seeing many articles calling urgently for landlords and tenants to work together but nothing about whether they’ve actually been doing so.
A brain surgeon is in charge of HUD and now the CDC is in charge of housing . . . yup, just another typical day in Trump’s America.
Very, very good points.
And in Biden’s America, the theft continues.