82% of Southern California tenants pay June rent on time
Responses to the Census Bureau’s latest “pulse survey” for the region show 82% of those answering the survey question, “Did you pay your last month’s rent on time,” said yes.
Thirteen percent said during the survey conducted from June 25-30 that they missed their due dates, and 5% said their rent was deferred.
The census report, the ninth in a weekly series, is the most comprehensive rent collection study for the region since the coronavirus shutdown began in March. The survey included 5.7 million responses from renters in Los Angeles, Orange, Riverside and San Bernardino counties.
The results appear to show Southern California rent collections are slightly better than in the nation as a whole.
The census reported 80% of nearly 71 million U.S. renters reported paying their June rent on time, with 18% missing their due dates.
Two other surveys showed weakening rent collections nationally.
The National Multifamily Housing Council, which represents apartment owners, reported last week that 77.4% of renters in large, professionally managed apartment buildings paid all or part of this month’s rent by July 6 and 80.8% paid some or all of their June rent during the first week of the month.
The council didn’t report how many paid their rent in full, but about one in five U.S. apartment dwellers paid nothing during their first week of the month.
An online survey of 4,000 Americans by ApartmentList.com found just 64% of tenants reported they had paid their July rent in full by last week, and 68% paid their June rent in full by the first week of last month.
Southern California rent collections were slightly lower in the latest census survey. The average collection rate was 83% for previous weekly surveys dating back to late April. On-time payments fell to a low of 77% during the May 14-19 survey and rose to a high of 90% June 11-16.
State and federal unemployment assistance proved to be “a lifeline for renters,” multifamily council President Doug Bibby said in a statement. But the looming July 31 deadline for ending $600 a month in federal unemployment aid is raising concerns that missed payments — and ultimately, renter evictions — could soar down the road.
Without an extension of the $600-a-month payments or direct renter assistance, Bibby said, “the U.S. could be headed toward historic dislocations of renters and business failures among apartment firms.”
A statewide ban on processing evictions remains in effect in California until three months after the coronavirus emergency is lifted, and numerous cities and counties have additional protections in place.
In addition, the California Legislature is considering proposals to give tenants more time to repay back rent, with tax credits for landlords with missed rent collections.
Nonetheless, the response to the latest ApartmentList survey “shows widespread and growing concern about housing insecurity” nationally. The report found 21 percent of respondents were “very” or “extremely” concerned about facing eviction.
Homeowners generally have less trouble making housing payments than renters.
In Los Angeles and Orange counties, 89% reported making their mortgage payments on time (vs. 82% of renters), census figures show. Nationwide, 87% of homeowners reported on-time payments.
In the Inland Empire, however, just 76% of owners paid their mortgage on time.
Generally, older renters and higher-income renters have higher rates of on-time payments, the census figures show.
The ApartmentList survey showed also that dwellers of larger apartment buildings had the lowest missed-payment rates (28%), while those renting houses had the highest missed payment rates (38%).
Source: pe.com
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