Nearly half of L.A. tenants owe back rent
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UCLA–USC survey shows many renters missing out on government assistance

LOS ANGELES - Californer -- In a new survey of Los Angeles County renters, 49% of households reported that they were unable to pay all of their rent during the pandemic.

The study, by researchers from UCLA and the University of Southern California, found the median amount renters owe their landlords is $2,800. That suggests that countywide, tenants owe landlords upwards of $3 billion.

The findings are from one of a pair of surveys of 1,000 renters each — one conducted in July 2020, which focused on renters' ability to pay rent in the short term, and another in March 2021, asking about their ability to pay over the entirety of the pandemic.

The preliminary results show that in both surveys, about 7% of renters missed a full rent payment in at least one of the three months before the study was conducted. But by the time the second survey was conducted, the share of renters paying less than the full amount to a landlord at least once during the crisis had almost doubled to 31%, up from 17% in July 2020.

The study was co-authored by Michael Manville, Paavo Monkkonen and Michael Lens, associate professors at the UCLA Luskin School of Public Affairs; and Richard Green, director of the USC Lusk Center for Real Estate.

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A slight majority of respondents reported paying their rent on time and in full, and many of those who owe rent said they were behind by less than a month. But other renters are emerging from the COVID-19 emergency in a financial hole they will struggle to climb out of on their own, the authors write in a research brief published today.

Of particular concern is evidence from the surveys that renters' debt rose sharply as the COVID-19 crisis dragged on. Only about 6% of Los Angeles tenants reported using a credit card to pay their rent prior to the pandemic. That figure rose to 19% of respondents in the early days of the emergency, and to 44% in the latest survey. Also in the 2021 survey, 49% said they turned to friends and family to help them pay rent, 58% dipped into their savings and another 37% reported taking out an emergency or payday loan.

The overall share of renters taking on debt reached 45% in the second survey, up from 32% in the first.

The 2021 survey was funded and produced by the UCLA Lewis Center for Regional Policy Studies in partnership with the USC Lusk Center for Real Estate, the UCLA Luskin School of Public Affairs and the Committee for Greater LA.

https://www.lewis.ucla.edu/research/covid-renter-distress-2021/

Source: The Hoyt Organization
Filed Under: Real Estate

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