13 Million Americans are IN DEFAULT on their Rental Leases and Mortgages in 2022. The coming Eviction Wave could create a bigger Housing Crash than Subprime Crisis by causing Real Estate Investors to liquidate their portfolios.
Data from the US Census Bureau shows that over 13 Million Americans are late on their home payments. And that nearly 5 Million expect to be evicted or foreclosed in the next 2 Months.
So many Americans are in default because the cost of Housing has surged over the last 2 Years. For instance, the typical rent is up by 22% compared to only 7% for wages since 2021. The result is that more and more renters are late on their payments.
This problem is especially bad in a Housing Market like Tampa, Florida, where the local worker needs to spend 50% of their wages on rent. Cities such as Las Vegas, Phoenix, and Miami have similarly high costs.
One of the reasons these Sun Belt Real Estate Markets have become so expensive is that Real Estate investors (like Corporate Landlords and Home Flippers) have come in and bid up the price of homes and rental properties. The tenants are having difficulty paying the rent, but for now landlords are allowing late payments without mass evictions.
I believe that will change as the 2022 Recession becomes worse. As job losses mount and wage growth stagnates, Landlords will eventually pull the trigger on Evictions, creating huge losses for their rental properties. Many investors will be forced to sell into a down market, which will further perpetuate price declines.
Remember that the buck stops with wages/income. In the end tenants need to be able to have the money to afford their rental costs. If they don’t – evictions will occur, especially as the Federal Government’s Rental Assistance runs out.
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Originally published at https://www.youtube.com/watch?v=L-XhzvHUgB0
The post Prepare for the EVICTION WAVE about to hit US Housing Market (13 MILLION NOW IN DEFAULT) first appeared on Miami In News.
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