Tenants Experience More Job Loss Than Home Owners

According to an article in yesterday’s Washington Post, 60% of all renters across the nation have had at least one member of their household either lose a job or experience a pay cut since the start of the Covid-19 crisis.

Only 45% of all homeowners have experienced a reduction in income or job loss.

This data was from a Census survey July 9-14.

July was the first month one of my own tenants failed to pay rent.

And while the federal eviction moratorium on federally backed mortgages has expired, the state of Minnesota’s remains in effect until August 12.

Meanwhile, the extra $600 a week in unemployment assistance the federal government was providing to laid-off workers expired last weekend. With August’s rent due in days, and the U.S. House and Senate once again at odds with one another over another aid package, millions of Americans are likely to struggle paying August’s rent.

And that makes it tough on duplex owners who have mortgages to pay.

Meanwhile, low mortgage interest rates are helping fuel a boom in the housing market. The median home price in the U.S. is $340,000; up 5% from last year. In the Twin Cities, the median home price is $260,000; up 4.2 percent over last year.

Many of the buyers are millenials purchasing their first home, and others looking for less expensive space as the economy sputters.

Enter the duplex; a comparatively inexpensive alternative for otherwise home buyers.

And one of the few exceptions for the governor’s eviction moratorium. If an owner-occupant wants a tenant whose lease has expired to move out so they can move in, the tenant must find new housing.

Duplexes are still in short supply for Twin Cities buyers. I had a buyer lose out on one over the weekend. The offer was far above list price – but there were 14 other offers on the table as well.

If you’ve been considering selling your duplex, this may be your moment.

Give me a call to talk about your options.