Goldman Sachs: 750K households face eviction this year

Roughly 750,000 U.S. households face eviction in the months ahead in the wake of a Supreme Court ruling striking down the Biden administration’s eviction moratorium, a new report released by Goldman Sachs has found.

In the report obtained by CNN on Monday, analysts for the company forecasted a “sharp and rapid increase in eviction rates” in the months ahead unless emergency rental assistance already set aside for states to assist with the current eviction crisis is “distributed at a much faster pace or Congress addresses the issue.” 

The report estimated that north of 2.5 million households are currently behind on rent, with the tab for outstanding charges for landlords racking up billions. 

Analysts said in the report that the “strength of the housing and rental market suggests landlords will try to evict tenants who are delinquent on rent unless they obtain federal assistance.” 

They also added that evictions in cities hit hardest by the coronavirus pandemic could be “particularly pronounced,” noting the rental markets in those regions, CNN noted.

The Hill has reached out to Goldman Sachs for a copy of the report. 

The report underscores rising concerns echoed by Democrats who have pushed for eviction bans in recent weeks as the nation continues to see a surge coronavirus cases across the nation fueled by the delta variant.

An eviction moratorium, which was enacted by Centers for Disease Control and Prevention (CDC) during the previous administration and later extended under President Biden, was struck down by the Supreme Court in a 6-3 ruling last week.

The high court’s ruling came months after the court issued handed down a similar decision blocking the order in June, with Justice Brett Kavanaugh saying such a move would require an act of Congress.

Lawmakers, however, have struggled to make progress on the issue.

Members are putting pressure on state and local governments who have been slow to distribute the millions in federal rental aid they’ve been provided to help those in need.

In an interview earlier this month, Abby Boshart, a policy coordinator in the Metropolitan Housing and Communities Policy Center at the Urban Institute, said the task to distribute the aid has been “really difficult” for local governments.

“It’s important to highlight that these local actors have really done tremendous work to develop these programs,” she said. “This funding didn’t come through HUD, or housing authorities, who typically distribute rental assistance and have experience doing so.”

According to recent data released by the Treasury Department, almost 90 percent of the aid has yet to be distributed, leaving roughly $40 billion held up.