Nearly one-quarter of Americans say they missed their rent or mortgage payment during the first week of May, double the rate that indicated they missed their April payment, according to a new survey. Another 9% say they were only able to scrounge together a partial payment, signaling a brewing crisis that could have long-term impacts for residents, landlords, and lenders.
“Record layoffs are driving an unprecedented spike in missed rent and mortgage payments,” ApartmentList.com said.
Fallout from the coronavirus didn’t discriminate between renters and owners, who said they were equally to miss a payment, according to the survey results from ApartmentList.com. The findings also suggest the federal government’s stimulus checks had little impact on the likelihood that someone missed a rent or mortgage payment. On the other hand, the ability to work from home was a big predictor: Those could telework had a May delinquency rate 10 percentage points lower.
The news isn’t all bad in the survey. About two-thirds of those who missed April payments, or who were late, had made good on the debt by the end of the month. Still, with many of those residents missing their May payment deadline, pressure is clearly mounting on their financial situations.
The survey found that 79 percent of owners and renters feel confident they can make their June payment, even if shelter in place orders remain in place.
The stimulus payments seemed to help renters a bit more than owners, but had little impact overall: “Among renters who received their stimulus checks, 71 percent paid their May rent in full, compared to 64 percent of those who did not receive one. For homeowners, meanwhile, delinquency rates are nearly identical across those who have and have not received aid,” the report found.