Pandemic boom towns are facing a rental housing crisis, with eviction rates soaring as rents reach new heights.
High Rents Cause Evictions to Spike by 35% in Pandemic Boom Towns
According to Princeton University’s Eviction Lab, cities across the Sun Belt — a region where many flocked in 2020 and thereafter in search of fewer COVID restrictions and lower costs of living — are seeing a massive increase in evictions, with filings up 35% compared to pre-pandemic levels.
Blame it on the pandemic-driven shifts in where Americans moved, lived and worked, which pushed rent prices through the roof — especially for area locals, whose salaries weren’t on par with the new arrivals.
Nashville, a prime example, has seen evictions spike 31% since 2019. Fort Worth, Texas, and Jacksonville, Florida, aren’t far behind, with increases of 25% and 14%, respectively.
The migration to the Sun Belt pushed US rent increases to peak at 17% year-over-year in early 2022, according to Realtor.com. Cities in this region led the charge in price hikes.
“As the United States moves past the COVID-19 pandemic, low-income renters face an increasingly difficult housing market,” the Eviction Lab noted.
“The country lacks millions of units of affordable rental housing, and in those units that are available, a record number of tenants are paying well beyond their means.”
However, the tide might be turning. Rents are starting to fall, with some of the steepest declines happening in the Sun Belt.
Austin, Texas, reported a 6.6% drop in rents in April, the largest in the nation.
Nashville and Jacksonville also saw decreases, with rents falling 5.9% and 5.6%, respectively, according to Redfin.
Source: New York Post
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