Rent Debt Disproportionately Burdens Vulnerable Groups

Thirty percent of renters did not make their January payment on-time at the start of the year, according to a survey of 4,000 people from Apartment List. 

The missed payment rate for non-white renters was nearly 50% higher than that of white renters in Fall 2020, according to Apartment List.

In May, the percentage of renters unable to make a full on-time payment rose above 30%. While eviction moratoria kept people in homes, it did not eliminate past-due rent obligations. In its survey, Apartment List found that 28% of renters carry rent debt.

A staggering 42% of respondents owe over $1,000 to their landlords. Rent debt disproportionately burdens younger and poorer renters, renters of color and renters receiving government benefits.

For Black renters, the rent debt problem has been worsening as it improves for other groups. Apartment List says the percentage of Black renters with rent debt has grown from 47% to 53% since October. In that same timeframe, it has dropped from 56% to 38% of Hispanic renters, from 39% to 27% of Asian renters and from 23% to 21% of white renters.

Not surprisingly, rent debt improvements have been concentrated among the wealthiest households. Since October, the rate of rent debt has nearly halved for households making more than $100,000. But it has fallen a few percentage points for those earning less than $50,000.

Fifty-one percent of renters told Apartment List they are “not at all concerned” about an eviction, an increase from 39% six months ago. But this sentiment isn’t universal. Fifty-six percent of white renters are “not at all concerned” about a looming eviction, only 33% of Black renters, 38% of Hispanic renters and 42% of Asian renters said the same, according to Apartment List. Also, 31% of Black renters are “very” or “extremely concerned” about losing their homes. That is more than any other group and over twice the rate of white renters.

Not surprisingly, more than 80% of renters who are extremely concerned about an eviction owe their landlords money. On average, they owe much more than less-concerned groups, according to Apartment List. Forty-five percent of those extremely concerned owe more than $1,000, compared to just 3% of those who are not worried about losing housing.

Many of these rent-burdened renters are likely to be newly-indebted to friends and family (49%, versus just 20% of renters without rent debt). They are also more likely to be further-indebted to credit card companies (29% versus 21%). Forty-one percent are also withdrawing money from personal savings, while 15% are removing retirement accounts faster than those who are free of rent debt. Twenty-six percent are more likely to sell personal assets for cash needed for essential, immediate spending.