Why COVID could propel homeless numbers

Nearly one-third of Americans didn’t pay their housing costs in July.  But local, state and federal moratoria on evictions originally in place during the pandemic are expiring.  An assistant Clemson professor, Lily Shen, and associates elsewhere have developed a search model that shows stricter regulations on landlords will have unintended consequences.  The model shows an increase in eviction costs to landlords will lead to higher rents, a decrease in the housing supply, a lower vacancy rate and a subsequent increase in homelessness.  “Though advocating for tenant rights seems noble and the right thing to do, the resulting consequences could have a devastating impact on this vulnerable population,” Shen said.  “Our research indicates that if landlords aren’t allowed to evict, rent will likely increase to compensate for their losses.  The housing supply would diminish, though the demand would still exist.”