Missed rental and mortgage payments now total over $110 billion since the pandemic started.

Slightly under five million households did not make their rent or mortgage payments in the second quarter, updated research from the Mortgage Bankers Association’s Research Institute for Housing America reported. RIHA’s study, Housing-Related Financial Distress During the Pandemic, found that 8.6% of renters, or 2.86 million households, missed, delayed or made a reduced payment in June, while 4.6% of homeowners (2.19 million) missed their mortgage payment. In addition, 28 million student debt borrowers (44.8%) missed payments in June, up from 26 million in March, RIHA reported.   “Given the level of government support during the pandemic and the more recent improvements in the economy and labor market, it is quite possible that the observed levels of rental non-payments may be at or close to pre-pandemic levels,” said Gary V. Engelhardt, Professor of Economics in the Maxwell School of Citizenship and Public Affairs at Syracuse University. “However, the recent rise in COVID-19 cases, and elevated inflationary pressures, could slow economic growth and hiring. These potential headwinds could also impact households still facing hardships.” Since the pandemic started in second-quarter 2020, 6.8% of renters and 5.7% of homeowners have missed four or more payments. Missed rental payments now total $41.7 billion, missed mortgage payments total $76.5 billion and missed student loan payments total $155 billion. “Homeowners’ employment situation and ability to make their mortgage payments has meaningfully improved since the onset of the pandemic,” said Edward Seiler, Executive Director with the Research Institute for Housing America and MBA Associate Vice President of Housing Economics.

Source: Mortgage Bankers Association