From Staff Reports
The landmark American Rescue Plan Act of 2021 provided some financial relief for Texans, but hundreds of thousands of renters facing eviction as the federal moratorium expires on March 31. It’s a ticking time bomb for the rental market.
“The short-term multifamily outlook is less than ideal,” said Dr. Luis Torres, Research Economist for the Texas Real Estate Research Center at Texas A&M University. “The coronavirus bill passed by Congress March 10 includes help for tenants who are behind on their rent and utility bills. Even with the assistance provided by the latest round of fiscal stimulus, many renters are jobless and depend on weekly unemployment benefits.”
According to the Texas Quarterly Housing Report, 74 percent of DFW households that are behind on rent see eviction as either very likely or somewhat likely in the next two months, compared with 52 percent nationwide.
That’s another worrisome sign for both renters and landlords.
“The apartment market short-term outlook is worrisome due to the uncertainty surrounding the ending of the eviction moratorium,” Torres said, “But it will be helped by the latest round of fiscal stimulus.”
While there will be short-term disruptions and pain for both tenants and landlords, the effects may be less dire for landlords and the multifamily housing construction sector in hot markets where people are moving in large numbers. The metropolitan statistical area of Dallas-Fort Worth-Arlington sports a rent payment percentage that dipped only 0.3 percent lower than fourth quarter 2019, reports show.
“The multifamily market is poised to do well in the medium- and long-terms because of constrained single-family supply and prices rapidly outpacing incomes, especially in high growth Texas markets like Austin and Dallas-Fort Worth,” he said.
