Millions late on rent as new evictions loom
About 15% of U.S. renters aren't caught up with their payments, according to Census Bureau data, and it's about to get worse this summer as many leases come due and landlords boost prices.
That represents 8.4 million Americans who were struggling to pay their monthly rents during the June 1-13 period of the census survey. The share was markedly higher for Black Americans — almost a quarter are behind — and for people ages 40-54, an age when many are at their earnings peak.
At least 13% of California's rental population, or 1.3 million tenants, wasn't caught up with their landlord during the June 1-13 period of the census survey.
The census added new questions about rents to its household survey in June, just in time to catch the peak season of lease renewals. There are roughly 60 million households who live in rentals, including many on annual leases who haven't felt the impact from soaring rental prices this past year. That's about to change.
About 3.5 million households say they are very or somewhat likely to leave their house in the next two months because of eviction. In cities from Atlanta to New York, there's already evidence of the renting squeeze.
In California, 178,000 renters, or 14%, say it's very likely they'll leave the rental in the next two months due to a pending eviction. Nationally, 1.15 million, or 14%, face a high likelihood of forced departures.
In the past 12 months, rent increased by at least $250 per month for nearly 1 million Californians, or 10% of all tenants, according to the survey. Nationally, 6.7 million had $250plus rent bumps — 11% of all tenants.
Market rout deepens at midyear
The selloff in stocks deepened at June's end after weak consumerspending data fueled worries about a recession, with the S&P 500 suffering its cruelest first half since Richard Nixon's presidency.
The equity gauge is down about 21% in the first six months of the year, the most for such a span since 1970. The superlatives kept piling up across Wall Street. Treasury 10-year yields sank to 3% from a decade-high of 3.5% in mid-June while the dollar had its best quarter since 2016.
U.S. consumer spending fell for the first time this year, suggesting an economy on somewhat weaker footing than previously thought amid rapid inflation and Federal Reserve hikes.
“The stagflation that has gripped our country right now is going to make it tough on the stock market over the intermediate term,” said Matt Maley, chief market strategist at Miller Tabak. “When demand is not the key reason why inflation is a problem, a slower economy is not going to help bring inflation down as much as some experts seem to think.”
After a rough first half of the year, July will be pivotal for the future direction of markets amid corporate earnings, key inflation data and the Fed meeting, according to Greg Marcus, managing director at UBS Private Wealth Management. He says volatility will probably remain elevated until there's evidence that inflation is moderating, recession risks are receding and geopolitical threats are declining.
Airbnb bans parties for short-term rentals
Airbnb is making permanent its ban on parties at homes listed on the site for short-term rentals.
The San Francisco company believes the ban has worked, saying Tuesday that reports of parties at listed properties have dropped 44% from a year ago.
More than 6,600 guests were suspended last year for related violations, Airbnb said.
Airbnb began to crack down on parties in 2019 after a fatal shooting at a party in a house in California.
At that time, the company prohibited advertising parties at Airbnb locations on social media.
The number of parties at Airbnb locations increased during the pandemic, Airbnb said, as people moved gatherings from bars and clubs to rented homes. That led to a temporary ban in 2020.
While making the ban permanent, Airbnb said it will lift a limit of 16 people at rented properties. It said the cap was prompted by health concerns before vaccines against COVID-19 were available.