The Roof, The Roof Is On Fire; Let’s Talk Housing Inequality
Housing inequality and eviction are two things that unfortunately have been viewed as a societal norm during the latter half of the past century, and both come with many fallacies. One common misconception is that eviction is avoidable, and that there is something wrong with the poor themselves. Eviction isn’t a matter of whether one can or cannot pay their bills, but rather the result of a myriad of factors which can affect someone living in poverty both mentally and physically, preventing them from getting their rent checks in on time.
One eviction can lead to a constant, vicious cycle that many are then stuck in for the rest of their lives. There are also many cases in which these evictions have no good reason for even occurring, such as astranger breaking down the front door. The aftermath of eviction can include unintended and increased costs such as moving, loss of security deposit and legal fees. In most cases, the eviction will go on public record, which is available for all landlords to see, decreasing an individual’s chance of getting approval with future housing applications. This often leaves people in desperate situations whereby they will accept any other living situation, regardless of condition or neighborhood.
There are an overwhelming amount of evictions taking place. Let’s take New York as an example: just in one day; there are a total of 103 evictions. NYC’s Worst Evictors sheds some light on this topic. Ethnicity and discrimination also play a huge role, where black households are more likely to be at risk of unfair treatment in the rental process; 11.9% are threatened with eviction, compared to only 5.4% of whitehouseholds.
Some lawmakers in Southern states like Georgia have started to make a push for strengthening tenant rights. In addition to that, a coalition in Virginia has released a set of processes that can be taken to reduce the eviction rates among Virginia, as well as in other states. Similarly, many private real estate actors with a focus on affordable housing are beginning to look at financial education for tenants, administrative support and community lending schemes to try to keep families in their homes and build more resilient communities.
Gianna New, Business Development Intern
There have been a few recent rallies in NYC where individuals are demanding that lawmakers pass rent control legislation, after recent rent reform failed to include eviction protection.
The Opportunity Zones (“OZ”) legislation has created a tax incentive for investors to re-invest capital gains in low income U.S. communities. Whilst the intention is noble concerns have been raised about these investments causing gentrification and displacement in communities, rather than upliftment of the current residents. Our advice: be cautious, and challenge OZ fund manager on how they intend to interact with the communities they’re investing in.
Matthew Desmond delivers an astonishing read based on poverty, profit, and eviction rates in Milwaukee in his Pulitzer Prize winning book, “Evicted.”
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