The Housing Market Is Booming, But Millions of Americans Face Eviction —and the Gap Is Getting Worse

In late February, Jessica Bonner-Gomez, an elementary school speech-language pathologist, signed a yearlong lease for an apartment in Birmingham, Ala. She and her husband, a hospital nurse, thought it would be a temporary move. The couple had recently qualified for a real estate purchase in a housing subdivision, but could only afford the down payment if they tapped into their retirement funds. Ultimately, they decided to save more cash while paying rent. Bonner-Gomez was making enough to cover expenses and grow her savings. She supplemented her $1,000-per-week income with teaching and tutoring jobs that paid about $400 a week. But when schools shut down in March because of the COVID-19 pandemic, those side jobs dried up. Then summer recess started, and her total income dropped to $80 a week. Her husband’s hospital also cut employee wages for several months. To cover their $1,300 monthly rent, plus car payments, health-insurance premiums, groceries and other expenses, the couple depleted their savings accounts and started relying on credit. “During the summer it was frustrating and hard,” says Bonner-Gomez. “We were accruing debt on the credit card to the point where it was at 80% utilization. That was not a place we wanted to be.” Bonner-Gomez’s language pathology work restarted with the new school year, and she’s now earning a higher salary. But the couple has lost so much financial standing that in November, a bank representative ...
Source: TIME: Health - Category: Consumer Health News Authors: Tags: Uncategorized COVID-19 Economy Source Type: news