Millions of Americans who lost their jobs during the pandemic have fallen thousands of dollars behind on rent and utility bills, a warning sign that people are running out of money for basic needs.
Nearly 12 million renters will owe an average of $5,850 in back rent and utilities by January, Moody's Analytics warns. Last month, 9 million renters said they were behind on rent, according to a Census Bureau survey.
The numbers were especially high for families with children, with 21% falling behind on rent, and among families of color. About 29% of Black families and 17% of Hispanic renters were behind, the Census Bureau reported. A separate analysis by the Federal Reserve Bank of Philadelphia, looking at people who had jobs before the pandemic, found 1.3 million such households are now an average of $5,400 in debt on rent and utilities, after those people had lost jobs and their family's income plunged.
Economists said these data points show that the economy surrounding the pandemic is inflicting economic pain that will hurt families for years.
With coronavirus cases at all-time highs, the economic recovery has stalled and job opportunities remain scarce. Only 245,000 jobs came back in November, the slowest pace since the recovery began. Restaurants and retailers cut jobs, and more small businesses are closing, data show.
The 20 million Americans receiving some kind of unemployment aid have seen their weekly checks dwindle since August, making it harder to pay bills. About 12 million unemployed are slated to have their benefits cut off entirely at the end of the year, because lawmakers have yet to agree on extending relief for the unemployed.
"The tidal wave is coming. It's going to be really horrible for people," said Charlie Harak, a senior attorney at the National Consumer Law Center. "The number of people who are now 90 days behind and the dollars they are behind are growing quite significantly."
Nashville mother Nikki Cornwell is $4,000 behind on rent and fears she will be evicted right after Christmas. Her landlord filed the paperwork already, and her court date is set for Jan. 5 — just after the federal eviction moratorium is set to expire.