Renters in Post-Pandemic America Continue to Struggle

Renters in Post-Pandemic America Continue to Struggle

By Rebecca Steele

A 2020 report by the Harvard Joint Center for Housing Studies revealed that typical renter households pay more than 30 percent of their income for housing, which makes it challenging for middle and low-income households to find affordable rental housing. Making matters worse, the economic impact of the COVID-19 pandemic put more than 3.5 million Americans at risk of eviction according to a 2021 Census Bureau survey. Evidence has also shown that the impact has been disproportionate among minority renters, who are double the number of minority homeowners. All of these facts underscore the need for more nonprofit support resources that help protect renters in seeking affordable and sustainable housing solutions.

Although communities throughout the nation implemented eviction moratoriums in response to the pandemic, many have expired, and even more are about to end. More than $45 billion in Federal funds were made available in 2021 for Emergency Rental Assistance, with less than half spent or obligated. While families continue to wait for vital support funded by the remaining Federal grant money, nonprofits have created private sector partnerships to launch programs that are already having an impact in communities of significant need.

One example is the joint response by National Foundation for Credit Counseling (NFCC) and the Housing Partnership Network (HPN). Their Renter Advantage program, supported by funding from the Wells Fargo Foundation, enables credit counselors and nonprofit rental property owners to work directly with renters to preserve their housing status and stabilize their financial situation in communities across the U.S. Renter Advantage streamlines service delivery for credit counselors to provide renters with trusted guidance including enrolling renters in need of assistance in plans to address sustainable rent repayment, debt management, and improving long-term financial health.

Credit counseling provided by trusted nonprofit organizations has been proven as an effective pathway to financial stability for those experiencing a financial shock, such as income reduction that leads to debt delinquencies. The role of nonprofit credit counselors in rental counseling programs is to advocate for consumers by identifying solutions to the most critical budget and debt repayment issues. A viable action plan may include a range of options including enrollment in a Debt Management Program (DMP) where credit payments and interest rates are reduced while delinquent accounts are re-aged to report as being paid on time. Independent research by The Ohio State University has proven the overall positive impact of nonprofit credit counseling on financial wellbeing in their Sharpen Your Financial Focus Impact Evaluation. Addressing the matter of past-due rent becomes much more manageable after a renter is on such a pathway toward financial stability. As that journey begins, counselors can work with property managers and tenants to identify the most equitable solutions for resolving rent issues while preserving the housing status of renters at risk. Nonprofit counselors are also able to direct renters toward other resources in their community for support addressing matters like food insecurity, job skills training, and affordable access to healthcare. The combined result brings tenants and property managers together to lift renters out of crisis while helping stabilize the rental housing market.

More information about the impact of nonprofit credit and rental counseling can be found by visiting the NFCC website.

Rebecca Steele

Former President and CEO of NFCC

Programs like the U.S. Renter Advantage can make a huge difference in the Quality of Life of struggling renters. Rebecca’s commitment to helping renters who need financial assistance perfectly exemplifies Leadership Principle #12: Build Equality! 

Building Equality means putting in the effort to address the unfair advantages that some people have over others (whether due to socioeconomic class, race, gender, etc.). To better understand what building equality means and how to do it, watch Erica Courtney lead the NDILC Councilwomen in a discussion about diversity, equity, inclusion, and more: