During the pandemic the CDC imposed an eviction moratorium which forbid landlords from evicting tenants who did not pay their rent. It was finally lifted in 2021 but remained in some states and cities until well into 2022. This was in spite of generous government benefits in 2020 and 2021, and then a booming economy and tight labor market, which should have helped people pay rent. But in spite of the moratorium, or perhaps because of it, the latest survey on economic well-being from the Fed reveals more households are behind on rent than they were in 2019. It could be because the moratorium reduced the incentive to pay rent, though falling-behind rates increased in 2022. It is also probably because rents have increased so much in response to higher inflation, rising interest rates, and a tighter rental market.
Source: FED Research and Analysis
Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.
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