Rent Collection Rates in Southern California Remain Strong Despite National Trends
Southern California Rent Collection Rates Remain Strong in June
According to the latest U.S. Census data, eight out of every 10 Southern California tenants paid their rent on time in June. The survey, conducted from June 25-30, showed that 82% of respondents answered “yes” when asked if they paid their last month’s rent on time.
The report, the ninth in a weekly series, included responses from 5.7 million renters in Los Angeles, Orange, Riverside, and San Bernardino counties. The results indicate that rent collections in Southern California are slightly better than the national average, with 80% of U.S. renters paying their June rent on time.
While rent collection rates in the region remain strong, concerns are growing about the looming July 31 deadline for ending $600 a month in federal unemployment aid. Without an extension of these payments or direct renter assistance, there are fears that missed payments and evictions could increase significantly in the future.
Statewide eviction bans and additional protections at the local level are currently in place in California. The California Legislature is also considering proposals to provide tenants with more time to repay back rent, along with tax credits for landlords who have experienced missed rent collections.
Despite these measures, a recent ApartmentList survey found that 21% of respondents nationwide are “very” or “extremely” concerned about facing eviction, indicating a growing sense of housing insecurity.
The census data also revealed that homeowners generally have an easier time making housing payments compared to renters. In Los Angeles and Orange counties, 89% of homeowners reported making their mortgage payments on time, compared to 82% of renters. Nationally, 87% of homeowners reported on-time payments.
Overall, older renters and higher-income renters tend to have higher rates of on-time payments. The survey also showed that residents of larger apartment buildings had lower missed-payment rates compared to those renting houses.
As the economic impact of the pandemic continues to unfold, the future of rent collections and housing stability in Southern California remains uncertain.