How The Eviction Moratorium Will Affect The Stateline

In September 2020, the CDC enacted an eviction moratorium. This moratorium had significant consequences for the real estate industry and real estate investors both locally and nationally. 

Renters have access to IDHA grants that will pay rent for up to 15 months. Yet, many tenants have not applied for the grants and have simply stopped paying rent. Despite not receiving rental income, property owners are still required to pay for property upkeep, property taxes and their mortgages while struggling with their own income changes due to COVID -19. They now have properties with expenses that are not bringing in income. Property owners are stuck between a rock and a hard place losing money and are unable to find new tenants or sell their properties without evicting tenants.

 In May, a U.S. Federal Judge ruled the moratorium unconstitutional but issued a stay of her ruling pending appeal. This week, the Supreme Court denied a request to block the moratorium order but noted that the CDC does not have the authority to extend the order further. When the current order expires at the end of July, no further extensions can occur without congressional approval. This is great news for property owners who will now be able to find new tenants willing to pay rent or be able to sell their properties.

This fall, the end of the eviction moratorium will cause changes in our local real estate market. Our listing team is currently working with more than half a dozen investors who are ready to list as soon as their homes are vacant. In September and October, we will see an increase in investment properties coming to the market and an increase in rental rates. Give us a call if you are working with investors who want to know what their properties are worth or if you would like more information about how COVID-19 policies have affected the real estate market.