National Eviction Moratorium Expiration is “Worrisome”

Despite a new round of fiscal stimulus checks, the approaching expiration of the national eviction moratorium on March 31 is “worrisome” to a senior economist with the Texas Real Estate Research Center at Texas A&M University. Dr. Luis Torres says the short-term multifamily outlook is “less than ideal.”

“The coronavirus bill passed by Congress on 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,” Torres says. “The apartment market short-term outlook is worrisome due to the uncertainty surrounding the  ending of the eviction moratorium, but it will be helped by the latest round of fiscal stimulus.”

Torres said 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 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.”