Several things are now pretty clear. First, the recession will last well into 2021. Even though retail spending has bounced back from a 20% drop, jobs haven’t. More government spending will help the 10 million people who have not regained their job, but it can’t give them a new one. As long as Covid is a major presence among us, the people who held those jobs will be in financial trouble.
Second, many people under financial stress who so far have been able to remain in their home, whether a house or an apartment, will end up making other living arrangements. There are about 100 million households in the U.S.—if 10 million have a member who is now unemployed, that’s a sizable portion of the real estate market.
Third, renters are disproportionately affected...Read More