By: Luis Diaz Updated 31 Jan 2022, 14: 47 pm EST
The annual report America’s Rental Housing 2022, published by the Joint Center for Housing Studies at Harvard, which details how the situation is in the market of rental housing by population groups, noted that 19% of Latino renters fell behind with rent in the third quarter of 2021.
Meanwhile, a quarter of African-American tenants were in the same situation. The study added that the proportion of Asian families that are renting have a payment delay of 18% , while the proportion of households rented by white citizens was 9%.
The main reason why there are delays in rent payments has to do with the low income of many American families. According to the report, of the 15% of those who were unable to make their payments in the third quarter of 2021, he has income less than $25,000 Dollars.
In addition, it was found that the 15% of people who have income between $25,000 dollars and $54,000 dollars, were also behind in their payments in the same period. In contrast, only 5% of families earning more than $75,000 dollars owed back rent.
Chris Herbert, managing director of the Joint Center for Housing Studies, explained that this disparity reflects the long-term discrimination in labor markets that has sent many families of color to low-wage jobs in the service industry.
“This sector suffered the cuts of employment in the last two years, which has only aggravated the existing inequalities”, explained Herbert.
According to the report, the demand for rental housing had an upturn in the second year of the pandemic, reducing vacancy rates and increasing rents throughout the United States.
The reason why this trend occurred has to do with the lack of inventory in the sales market, which has prevented many older tenants from s income buy homes, according to the Joint Center for Housing Studies.
“At the same time, low-income households that bear the brunt of job losses in the pandemic are struggling to pay rent, reinforcing the stark divide between higher- and lower-income households,” the study noted.
On the other hand, this Harvard University department highlighted that despite the fact that there was federal aid in order to prevent mass evictions, there is a need for a permanent and financed housing safety net.
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