4 ms·

Why exactly are so many people not paying rent between the enhanced amount of unemployment that was given out and the labor shortage and rising wages that come

Why exactly are so many people not paying rent between the enhanced amount of unemployment that was given out and the labor shortage and rising wages that come with that? Who is this population of people who are not paying and why? Did a lot not manage to get unemployment benefits in the first place? Are landlords evicting tenants who owe back rent even if they are paying now? Is it just a matter of waiting for school to start up again so they can work?

csomar 5y ago
Are you asking why the law was put in the first place. You are living in a bubble where you (and your family/friends) respect your obligations. Surprise, most of society doesn't.
- sparrish 5y ago
  It wasn't a law. The Supreme Court says it was an illegal executive action.
anovikov 5y ago
For the absolutely stupid reason: they aren't paying because they can.
- MattGaiser 5y ago
  That is what I am trying to figure out. Are there actually millions of people unable to pay or do they just see this as an easy way to have more money and get housing for free? A friend of a friend did this though. Went from $0 to 6 figures in assets just by investing his rent money as he kept his job.
  - malwarebytess 5y ago
    Renters still owe. If their 'tenants' have any money to collect, like your friend of a friend, they certainly can be got to. Most people do not have the money.
    - MattGaiser 5y ago
      Yes but you likely have to sue them and spend a ton of money trying to collect. I am not sure if it is considered worth it, especially given that many would have just spent the money.
      - standardUser 5y ago
        Landlords go after tenants for back rent literally all of the time. They can even get court orders to garnish wages.
standardUser 5y ago
A lot of people are in debt to their landlords due to non-payment of rent from when the economy shut down and the subsequent recession. Sure, they may have jobs now, but the "rising wages" due to the current "labor shortage" aren't significant enough to be generating an extra $10-20k for back rent for average-wage workers. But I'm sure there's also plenty of people scared of COVID and/or using COVID as a reason to not work or pay rent and hope the whole thing works it self out.
- MattGaiser 5y ago
  People getting evicted for back rent, even if they are paying the current month, could explain this. Although given enhanced unemployment, I am still curious why they would owe that much.
xg15 5y ago
Genuine question: Did the labor shortage really lead to widespread wage increases? My impression (from internet sources) was that many businesses were unwilling or unable to raise wages even if this meant vacancies. E.g. there were various stories about fast food joints that would rather reduce service or close altogether than to raise wages. I can't say if those places are representative of the general trend or just extremes though.
ajay-b 5y ago
I have a theory: It’s compariable to the early days of credit cards. Suddenly you have this money you can spend, and you reason that you can put off worrying about it until later. Suddenly people think hey why should we pay the mortgage or the rent, let’s use that money for other things. Just like its credit. The next thing you know you’ve maxed out the card, gone six months without paying rent, and suddenly have this thing due.

csomar 5y ago

Are you asking why the law was put in the first place. You are living in a bubble where you (and your family/friends) respect your obligations. Surprise, most of society doesn't.

sparrish 5y ago
It wasn't a law. The Supreme Court says it was an illegal executive action.

anovikov 5y ago

For the absolutely stupid reason: they aren't paying because they can.

MattGaiser 5y ago
That is what I am trying to figure out. Are there actually millions of people unable to pay or do they just see this as an easy way to have more money and get housing for free? A friend of a friend did this though. Went from $0 to 6 figures in assets just by investing his rent money as he kept his job.
- malwarebytess 5y ago
  Renters still owe. If their 'tenants' have any money to collect, like your friend of a friend, they certainly can be got to. Most people do not have the money.
  - MattGaiser 5y ago
    Yes but you likely have to sue them and spend a ton of money trying to collect. I am not sure if it is considered worth it, especially given that many would have just spent the money.
    - standardUser 5y ago
      Landlords go after tenants for back rent literally all of the time. They can even get court orders to garnish wages.

standardUser 5y ago

A lot of people are in debt to their landlords due to non-payment of rent from when the economy shut down and the subsequent recession. Sure, they may have jobs now, but the "rising wages" due to the current "labor shortage" aren't significant enough to be generating an extra $10-20k for back rent for average-wage workers. But I'm sure there's also plenty of people scared of COVID and/or using COVID as a reason to not work or pay rent and hope the whole thing works it self out.

MattGaiser 5y ago
People getting evicted for back rent, even if they are paying the current month, could explain this. Although given enhanced unemployment, I am still curious why they would owe that much.

xg15 5y ago

Genuine question: Did the labor shortage really lead to widespread wage increases? My impression (from internet sources) was that many businesses were unwilling or unable to raise wages even if this meant vacancies. E.g. there were various stories about fast food joints that would rather reduce service or close altogether than to raise wages. I can't say if those places are representative of the general trend or just extremes though.

ajay-b 5y ago

I have a theory: It’s compariable to the early days of credit cards. Suddenly you have this money you can spend, and you reason that you can put off worrying about it until later. Suddenly people think hey why should we pay the mortgage or the rent, let’s use that money for other things. Just like its credit. The next thing you know you’ve maxed out the card, gone six months without paying rent, and suddenly have this thing due.