Eviction crisis kicked down the road

The Biden administration’s new moratorium on evictions postpones again the crisis of debt that looms over millions of Americans where the rent or mortgages are months overdue.

Congress imposed the original moratorium in early 2020 as the coronavirus pandemic began spreading rapidly and much of the nation shut down.

Tens of millions of workers were displaced and, even with two big federal stimulus payouts, many used all available cash to buy food and other essentials rather than pay rent. Landlords got stuck with those bills even though they remained on the hook for their own business loans and other expenses.

One estimate suggests the outstanding bills owed by more than 6 million renters could be $27.5 billion. A federal aid package to landlords was supposed to disburse $46 billion, but only a tiny fraction has reached them so landlords are still absorbing the costs unfairly.

When President Joe Biden considered whether to impose a new moratorium and extend the burden on landlords, what likely weighed most heavily on his mind was the prospect of 6 million Americans facing potential homelessness. However, it’s clear that one moratorium after another is not going to solve the problem. At some point, the moratoriums will end, and those debts will come due.

Congress can no longer afford to kick this can down the road. The path to avert this crisis promises to be expensive and politically complicated, but it requires ensuring that landlords are made whole for their mounting losses while helping renters clear their debts and stay in their homes.