What Does the End of the Eviction Moratorium Mean?
The Eviction Moratorium has been struck down by the US Supreme Court. Which has been in place since 2020 due to the pandemic. Landlords who are now owed billions of dollars in back rent will have the option to start evicting non paying tenants. Then replacing them with paying ones. New homeowners are also wondering what this means for them. Many landlords and homeowners are understandably hoping that house project costs will go down now. With many properties needing some rehab after all these months, what could happen? Let’s find out!
Will Home & Home Project Costs Go Down?
One of the major problems with house project costs has been the labor shortage in the lumber industry. Without enough workers on-the-job due to the pandemic, supply of building materials became severely restricted. We are starting to see some supply costs get cheaper as we head into fall of 2021. A sheet of 4×8 plywood that had skyrocketed to about $95 in April 2021 had dipped back down to $70 as of September 1st. That’s still about 100% more than it cost pre-pandemic. If the right factors do fall into place in the next few months, we could see costs dip some more.
Factors That Make It Difficult to Predict Next Year’s Costs
It’s hard to make a prediction on what’s going to happen with repair costs in 2022. We can’t predict the full extent of the fallout from the eviction moratorium ending. Housing costs are expected to increase. It remains an open question whether many landlords will have enough capital for major repairs. Homeowners are hoping to tackle home makeovers they have put off. Here are some of the factors that make it tough to project costs.
Government Failed to Provide 90% of Landlords with Rental Assistance
The federal government set aside $47 billion for rental assistance, but that program has been bogged down for months. Eviction Rental Assistance has failed to distribute what’s owed to landlords. About 10% of landlords have received any rental assistance from the program. The other 90% have not been helped at all, and some have tenants who have not paid rent in almost 18 months. Even if they’re finally able to evict delinquent tenants, they may be short of cash for property renovations. One of the largest renovations is a roof repair or roof replacement.
As Much as 750,000 Evictions Predicted by End of Year So Far
Goldman Sachs research shows that as many as 3.5 million homes are behind on rent or mortgage payments. Landlords are owed as much as $17 billion in rent payments. Many renters are going to tough it out and have reached arrangements with their landlords. However, predictions indicate that there will be about 750,000 evictions by the end of this 2021 year.
Angry Tenants Often Damage Property Before Leaving
Another problem that could happen is some delinquent tenants get upset during an eviction and try to wreck the property. It’s unlikely that they will climb up on the roof and damage it. However, it’s not uncommon at all for these types to rip out appliances or take a sledgehammer to the walls or ceilings before leaving. Those added costs for landlords and new homeowners will make a bad situation even worse.
Conde Roofing Provides Free Roof Inspections
We’re trying to do our part for property managers and homeowners in the New Hampshire and Massachusetts area. We travel within a reasonable distance from our office range in Merrimack NH. We offer free & honest roof inspections. For competitive rates, contact Conde Roofing for your roof repair needs.