Recent research from Urban Institute and Avail shows that renters’ awareness of emergency rental assistance (ERA) increased over the past year. Despite increased awareness of ERA, however, the lowest-income renters continued to struggle with rent, indicating a potential lag in the distribution of ERA funds to renters in need. The lowest-income renters were more likely to struggle to pay rent on time each month and to miss three or more rental payments over the past year compared to higher-income renters. They were also more likely to face pressure from their landlords to vacate their homes over the past year.
Urban Institute and Avail conducted a national survey of 2,038 tenants in January 2022 to better understand the struggles faced by low-income renters. The survey was meant to follow up on two previous surveys of tenants conducted in February 2021 and May 2021. The new survey showed that tenant awareness of ERA continued to increase over the year. In February 2021, only 31.2% of tenants were aware of ERA. By May 2021, 43.6% of tenants were aware of ERA, and by January 2022, 51.8% of tenants were aware of ERA. Renters behind on rent were more likely to be aware of ERA programs than those who were not behind (64.0% and 49.2%, respectively). Renters behind on rent tended to be the lowest-income renters: approximately 75% of renters behind on rent had annual incomes of less than $50,000. Overall, 59.0% of renters who applied for ERA reported they had received ERA funding. While 57.7% of renters whose incomes were less than $50,000 and who applied for ERA received assistance, a higher share (66.7%) of renters earning more than $50,000 who applied for ERA received it.
Despite increased awareness and broader disbursal of ERA funds, lowest-income renters were still struggling with their rental payments and facing pressures to vacate their homes, underscoring the need for more rapid disbursal of funds. According to rent-payment data from small-scale landlords tracked by Urban Institute and Avail, 85.7% of renters with the lowest rents made rental payments in April 2021, but payments have steadily dropped since then, indicating a potential lag in the disbursal of ERA funds to renters behind on rent. Renters with the lowest incomes struggled with their rental payments more than renters with higher incomes. Among renters with incomes less than $10,000, 16.5% missed three or more months of payments over the last year compared to 6.3% of renters with incomes between $25,000 and $50,000 and less than 1% of renters with incomes greater than $75,000. Renters with the lowest incomes were also more likely to face pressure from their landlords to vacate their residences over the past year: one in three renters with incomes less than $10,000 (33.5%) and one in four renters with incomes between $10,000 and $25,000 were pressured to leave.
Read the new report at: https://urbn.is/35HotWM