The Azucena Take: Extension of the Evection Moratorium

Update: On 8/27/2021, the United States Supreme Court struck down the CDC’s eviction moratorium on the basis that Congress and not the agency has the authority to take such action on the Federal level. This ruling will have no effect on any state, county, or city eviction moratorium.

With the Delta variant of COVID-19 running rampant, the Centers for Disease Control and Prevention (CDC) issued a new eviction moratorium in counties most at risk. This pushes back all evections to October 3rd, 2021 and it could be extended should the pandemic get worst.

The decision has been met with criticism from both sides of the political spectrum for kicking the can down the road (again). There needs to be a real solution that alleviates the problem for both tenants and property owners. Despite concerns of what will happen on October 3rd, a mass wave of evections is unlikely.

It's true that there are many who have not been able to find work, rent collection has held up during the economic recovery. According to research from the National Multifamily Housing Council, 94.9% of tenants made their monthly payment in July 2021. While a 2% drop compared to July 2019, it's a major improvement compared to what many anticipated. Overall, the data shows that the economy is recovering and the many relief programs are helping those in need.

This should not be a surprise for owners of investment property. During Q2 2021, the apartment market had one of the best performances since the 90's. Net absorption rate was at 218K while rent growth was at 4.1% and vacancy rates were at 3.8%.

You may be asking, "What about property owners who are struggling during this recovery?" Welp; this is why you should get your information from a professional who better understands the market and not some clickbait article from a news site desperate for attention. While there are property owners who are hurting, this is due to their unwillingness to either use any relief program or work with their tenants. 

A smart investor knows that the worse thing you can do is nothing. Those who have taken that path are feeling the effects while those who prefer to take action are being rewarded during this new age of economic prosperity.