News, unemployment

Covid-19 is making it difficult for Blacks and Hispanics to pay rent and mortgage

The Covid-19 pandemic has made housing costs unaffordable for growing numbers of Blacks and Hispanics

The Covid-19 pandemic has treated Blacks and Hispanics harshly.

Blacks and Hispanics die at a much higher rates compared with Whites from Covid-19.
Now there is even more bad news. To prevent the spread of Covid-19 pandemic, states ordered non-essential businesses to close, leading to layoffs of workers since March 13.

The loss of income from the layoffs have made it increasingly difficult for Black and Hispanic households to pay their rent or mortgage, according to Harvard Joint Center for Housing Studies.

“Black and Hispanic households are much more likely to be hurt by the economic impacts of Covid-19. More than 58 percent of Hispanic and 53 percent of Black household experienced a decline in employment income since mid-March, much higher than the share of Asians and other ethnicities (44 percent) and 39 percent of White households,” reported the study titled “Housing Perspectives: A Triple Pandemic? The Economic Impacts of Covid-19 Disproportionately Affect Black and Hispanic Households.

The study also reported that renters are more vulnerable than homeowners; 52 percent of renters have lost income from employment in the past two months compared to 39 percent of all homeowners. Hispanic renters were hit the hardest. Almost two in every three Hispanic renters lost employment income (64 percent), followed by Blacks (57 percent), Asians (51 percent) and Whites (47 percent) of renters.

Why is this happening? Blacks and Hispanics work in low-wage jobs and are most vulnerable to furloughs and layoffs, especially in hard-hit industries, such as leisure, hospitality, retail and construction. In these jobs, employees are least able to work from home, the study reported.

In June, the nonfarm payroll employment rose by 4.8 million as states continued to lift their stay-at-home requirements, but more economic pain is on the horizon as states are reporting dramatic increases in the Covid-19 pandemic.



Leave a Comment

Your email address will not be published. Required fields are marked *