Americans unable to pay rent with coronavirus crisis

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In the United States, behind the health crisis, the real estate crisis is already looming. In a country where social protection and savings are very low, millions of Americans laid off because of the coronavirus find themselves in great precariousness and risk being unable to pay their rent, raising fears of mass evictions as during the subprime crisis in 2008.

Publicity

With our correspondent in San Francisco, Éric de Salve

It is one of the first tangible signs of the economic crisis due to the coronavirus in a first world power almost devoid of social safety net. As of April 1, among the 3.2 million Americans fired overnight due to the coronavirus, many can no longer afford their rent. Especially since many have been dismissed brutally with little and sometimes no compensation.

Because before the first containment measures, on average 40% of Americans had less than $ 400 on their account. However, in the United States, unemployment benefits are extremely low and the check for $ 1,200 promised by the gigantic emergency plan voted by Congress should not be paid before mid-April.

Cascading economic consequences

As a result, New York Times estimates that in New York , the city hardest hit by the coronavirus in the country, 40% of tenants may not be able to pay their rent this month. With economic consequences cascading against unpaid bills, many homeowners find themselves unable to repay their loans.

And in New York as in Seattle, Los Angeles and San Francisco, calls to strike the rent are flourishing on walls and social networks. So to limit the impact of this property crisis that is already threatening, several governors have urgently decreed a moratorium on rental evictions: 90 days suspended in New York State, 60 days in California.

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• United States
• Coronavirus
• Employment and Work
• Economic crisis

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