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The housing crisis in 2008 brought devastating consequences to the United States, but with even bleaker economic indicators coming out week after week, it seems that we are now headed for an even worse housing market crisis. A little over a decade ago, we saw millions of Americans lose their homes. This time, the catastrophe could affect tens of millions. While this prediction may seem dramatic, the data is there to back it up.
In this video, we are going to give you the latest numbers that indicate a serious housing crisis is on its way. We’ll explain how we got to this point as well as what it means for the many Americans who will be feeling the strain.
According to the COVID-19 Eviction Defense Project (CEDP), a coalition of economists and legal experts, 110 million Americans rent their homes, and one fifth of those, representing over 20 million people, are at risk of eviction by the end of September.
Benfer also warned that the lack of federal support or intervention for those at risk would only exacerbate the devastation. Following the housing crash over a decade ago, 10 million people were displaced from their residences over the course of several years. The 20 to 28 million people Benfer is anticipating to be homeless as a result of the pandemic would lose their homes just between now and September.
Of course, this estimate rests on the assumption that another serious crisis won’t occur for the rest of the year. If things continue to go downhill at the pace they have been, the number could be much higher.
Most Americans haven’t even felt the worst strain of the economic collapse yet. Some have been making more on unemployment benefits than they would from paychecks for their regular jobs. But when those $600 weekly bonus checks expire at the end of this month, the shock will be immediate. These payments have been keeping countless Americans afloat, and when they end, rent and mortgage bills will become even harder to keep up with.
To make matters worse, other emergency measures like eviction moratoriums and forgiveness on late payments will run out in many states around the same time.
Some states have permitted landlords to continue receiving orders of eviction during the worst of the pandemic but did not allow them to be executed. Once the emergency protections expire, stockpiled eviction orders can be carried out immediately, instantly displacing families.
Worst of all, 29 states don’t even have protections in place that prevent evictions from happening. Once the federal government steps back, it will be a free for all.
In a few states, such as Nevada, the eviction moratoriums were also extended to commercial tenants. That means that not only households will be affected by the end of these protective measures, but also businesses that have been struggling to maintain their brick and mortar locations as foot traffic and profits ground to a halt throughout lockdowns.
If any one of the issues we were facing was an isolated event, perhaps we would be better equipped to address it. Unfortunately, overall tensions in the United States will only run higher as we approach a November election. Already, the eruption into total societal chaos could come at any moment.
But for some reason, much of the public is still under the impression that we have already passed the lowest point of the current crisis. In reality, we are walking unprepared into total economic devastation, with little to no fruitful preparation.
A perfect storm of unemployment, societal tensions, broken supply chains, and economic devastation will shake Americans to their core.
The earlier days of the pandemic saw panic surrounding the absence of toilet paper on store shelves. Now, we are seeing shortages of other staples like aluminum cans, soda, flour, canned soup, pasta, and rice. As the economic collapse worsens, so will the shortages. Smart Americans will take the summer months to prepare for what is ahead and stock up on necessary products.
But with so many at risk of losing their homes, where would they even store these items?
Without further assistance from the government, we are up against a housing crisis that is unlike anything we have experienced in our lifetimes. The ball is already rolling, and all that’s left to do is brace for impact.
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