The effects of the Covid-19 induced shutdown has not yet been realized. In the United States, record unemployment numbers continue to rise due to the global pandemic. Do not let the stock market highs fool you.
A survey conducted by Apartment List stated that 30% of Americans missed their mortgage or rental payments in June. The survey also discovered that “Missed payments continue to concentrate among renters, younger and poorer Americans, and those who cannot work remotely.” This is an increase from the 24% seen in April, which suggests a worrisome trend. The lower and middle income demographic are most like at high risk of missing housing payments in July as well. This is because at the end of July, 30 million unemployed Americans will lose the $600/week in federal unemployment benefits.
It appears that the CARES Act, which is the $2 trillion stimulus package has given minimal relief to reducing housing insecurity. Hopefully, more initiatives will be enacted to protect the country’s at risk demographics. The combination of rising unemployment levels, the subsequent lack of health insurance and housing instability creates a augmented health risk for lower to middle income populations. This represents a frightening storm building for Americas most vulnerable populations which are magnified with the effects of the global pandemic.