According to Eviction Lab, a Princeton University Research Unit, tenant evictions in a half-dozen major metropolitan areas have increased 35% as compared to their pre-pandemic 2020 levels. These elevated rates show little chance of returning to what the real estate industry would consider either reasonable or normal.
These areas include Las Vegas, Phoenix, and Houston where landlords filed 8,000 evictions in January alone. These numbers set a new record in several municipalities.
The only larger metropolitan areas that aren’t seeing increases are areas like New York or Philadelphia. These areas have tenant protection laws in place.
These elevated eviction rates follow major increases in rent. Over the past four years, asking rents for housing have increased 30%.
Currently, over 25% of all renters pay 50% or more of their income in rents.
In many instances, automation has made evicting a tenant easier. These newer systems are removing the discretion that on-site managers had to resolve issues with tenants who at least seemed willing to pay their outstanding liabilities.
Now AI Systems are even handling the difficult job of getting tenants out of a building.
Let me leave you with this…
I’ve written before about how our economy has become A Tale of Two Classes. This is just another example of that basic concept.
We have a wealthy, upper-class continuing to spend money like a sailor on leave. Industries like cruise lines and upper-end restaurants can’t hire workers fast enough to handle the increased demand.
Meanwhile, we have a lower-class that has to make decisions between putting gas in their cars or food on their tables. These increased eviction rates are just another sign of that split economy.
Many have said, for a number of years, that we’re the generation that will see the elimination of the Middle Class. Well, my Brothers and Sisters, here we are.
I’m writing this to ask all of you to think about your businesses as well as the goods and services that you provide.
If you serve a higher-end market, your life will probably be easier. You’ll be able to sell more at higher prices to your clientele.
If you serve a lower-end market, you’ve probably already begun to see difficulties in your profit taking. These races to the bottom never seem to end well.
But there is good news. We’re Entrepreneurs; the masters of our fate. We can make decisions about the futures of our business and our lives.
Spend some time looking at your market. Put together a proper vision for your future and your company. If you need to make some changes in your product or services offerings, get to it.
It doesn’t look like anything is going to change these economic trends, in our reasonably near future.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.SalarySolutions.net
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