As of May 5, 2021, a federal judge has struck down extending the nationwide eviction moratorium. This moratorium, established in 2020, permitted renters to avoid being evicted by a landlord during the pandemic if they were struggling to pay rent. This ban was established under the Trump administration, and was to expire on June 30, 2021, unless an extension was accepted by the government. Those eligible for the eviction ban were single individuals who made less than $99,000 a year or couples who made less than $198,000 annually, or individuals who received stimulus checks. All eligible individuals had to prove that they were struggling to pay rent in order to avoid being evicted.
The Biden administration has ruled that the ban is not worth extending, as a federal judge has overturned the ban’s extension. Many are worried that overturning the extension on the eviction ban will lead to an increase in COVID-19 cases, due to millions of Americans being displaced after being evicted. The ban was established originally to avoid the spread of COVID-19 due to displacement. Now, it’s anyone’s guess to see what will happen after the ban expires. Many states have individual eviction freezes, helping their own citizens, but not every state uses this. California does not have an eviction ban, which could be potentially devastating for individuals living in an expensive Californian housing market, or even many college students who are renting. The lack of an eviction ban can also be devastating to the California housing market, as it further encourages individuals to leave the state for other areas of the U.S., which is already a popular trend.
According to one interview by White House spokeswoman Jen Psaki, a recent study estimated that 1.55 million fewer evictions were filed in 2020 than expected because of the eviction ban. This meant more individuals staying in place and reducing the spread of COVID-19. A study led by Kathryn Leifheit of UCLA asserted that evictions between the beginning of the pandemic and the CDC’s national eviction moratorium in September of 2020 led to 433,700 excess COVID-19 cases and 10,700 additional deaths. This study did not mention whether California would be a state at risk for an increase in COVID-19 cases, but it seems likely that California would have some increase in coronavirus cases as individuals leave their residences to look for housing elsewhere.
The eviction ban, while helpful for tenants, was heavily criticized by landlords, property owners, and Realtors who were losing money by housing people for free. Currently, around one in five Americans are struggling with rent. In California, this is exacerbated by higher housing prices, competition for affordable housing for middle class individuals, as well as state restrictions of social interactions due to COVID-19. For those looking at the Californian real estate market, it’s important to be aware of COVID-19, as it has changed how the housing market is functioning. With housing prices on the rise, getting something sooner is always better. It can be extremely competitive, which is why Soldavi can help you narrow down your options and find what you’re looking for. Having an insider’s opinion is beneficial in navigating today’s real estate market in California.
If you’re wanting to learn more about the recent overturn of the eviction ban and how it may impact you or the real estate market in California, contact Soldavi today.