stats@U.S.renter households #covid19++

See also home ownership rate

https://www.bbc.co.uk/sounds/play/w3csz8mz is a BBC short program, consistent with the statistics from other sources. If accurate, then these pictures make a backdrop for my family to be seen as /affluent/ immigrants when we arrive in the U.S.

==== based on https://www.aspeninstitute.org/blog-posts/the-covid-19-eviction-crisis-an-estimated-30-40-million-people-in-america-are-at-risk/ in Aug 2020
( For a Singapore perspective, https://www.mnd.gov.sg/newsroom/parliament-matters/q-as/view/written-answer-by-ministry-of-national-development-on-households-living-in-hdb-rental-flats has some Singapore stats. Due to my bias, I tend to perceive it as more accurate than the U.S. stats. )

.. an estimated 30–40 million people in America (presumably beyond citizens) could be at risk of eviction in the next several months. Many property owners, who lack the credit or financial ability to cover rental payment arrears, will struggle to pay their mortgages and pTaxes and maintain properties. The COVID-19 housing crisis has sharply increased the risk of foreclosure and bankruptcy, especially among small property owners.

Multiple studies have quantified the effect of COVID-19-related job loss and economic hardship on renters’ ability to pay rent during the pandemic. While methodologies differ, these analyses converge on a dire prediction: If conditions do not change, 29-43% of renter households could be at risk of eviction by the end of 2020.

30% of renters (in some unknown survey) indicate that they have borrowed cash or obtained a loan to make rental payments. Tenants are increasingly using credit cards to pay the rent.

Personally, I find these percentages too high to be realistic.

— rental unit stats
As of 2020, “mom and pop” landlords own 22.7 million out of 48.5 million rental units in the U.S. housing market. In addition, I think there exist additional “rentable” units out there, but not put on the rental market, perhaps because owner doesn’t like to deal with tenants.

As of 2020, 44% of single-family rental units have a mortgage or some similar debt. Percentage go up when you go beyond SFH. 65% of properties with 2 to 4 units and 61% of properties with 5 to 19 units have a mortgage.

https://www.huduser.gov/portal/pdredge/pdr-edge-frm-asst-sec-061118.html has lots of details.

— renter population stats
2020 Apr: NMHC and the National Apartment Association informed Congress in April that “more than 25 percent of the households that rent in the US may need help making payments” because of COVID-19 rental hardship, translating to nearly 11 million households and 25 million people.

More precisely, in 2020 there are 100.8 million people in 43.8 million “renter households”.

1 in 3 Americans (probably including foreigners) live as renters, according to https://www.nmhc.org/research-insight/quick-facts-figures/quick-facts-resident-demographics/renters-and-owners/

14 million, or 30% of, renter households include children. I think most renter households desire to buy their home when they have children. Many of these 14 million households are unable or unwilling to.

In Singapore, About 52,000 households currently live in HDB rental flats under government schemes.

— rental burden among total household expenses, even before covid19

 

Live life2the fullest, but@low burn rate

A favorite among marketing slogans is “Live life to the fullest”, as you have it once. I guess the ERE author can say he is living his life to the fullest. I don’t need to benchmark with him.

Similar to him or unlike him, I do feel I’m living my life to the fullest. There’s nothing missing in my current carefree life. My current life is satisfying and complete.

The Buddhist would say there’s still a lot of unsatisfied desires and pains lurking beneath the surface. Admittedly, these pains will surface, but hopefully become mild and forgotten. The current carefree /bliss/ is obviously impermanent, and possibly short-lived, but in this blogpost I care more about the contributing factors:

  • foundation: marriage, health, citizenship,
  • green Cornerstone: rewarding, low-stress job
  • red Cornerstone: boycott to FOMO/FOLB
  • red Cornerstone: Brbr, ffree
  • # The red cornerstones are based on cash flow.

[19]ffree discussions with2friends: @end@c++US

Before I left U.S. in 2019, I had separate email discussions with SY and JL. To my surprise, they each replied (14 Aug 2019 and 28 Aug 2019).  Their brief answers are truthful, revealing and worth reading.

Without going into details of those discussions, I feel basically alone with respect to my ffree “state of mind”, as described in another blogpost, financial freedom=state@mind.

When living with family, I foresee a decline in this state of mind….

What would grandpa say?

[17]semi-retired thanks2rental yield #R.xia

More than one casual friend (Philip and a Prudential road show manager) recently remarked that I looked like semi-retired. They said that for different reasons actually, but one common factor is what I told each person about property investments.

Sometimes, it feels too tiring trying to maintain this salary. Therefore rental yield is the relief I have always dreamed of. Grandparents’ Beijing home can’t rent out (rental would be something like RMB 10k/m), but I hope all my other properties can generate S$5k/m

You said your neighbor collected 7Y of rental income (total 200k?) but used it all to restore the home. Now I feel these numbers are questionable — The damage caused by the Mexican tenant was perhaps less than (say 70% of) the total rental income. Perhaps your neighbor decided to spend the rental income on renovation. Renovation is more than restoration! Some people say “I have to spend all this extra income just to restore …” as a way of self-justification.

( Compare my sister, who used to spend her year-end bonus within weeks …)

So I don’t know if your neighbor actually need to spend 7Y worth of rental income just to restore a house. I think in most cases rental yield exceeds the cost of restore. My cost of restore was below $500 after renting out my flat for 3Y.

Anyway I have lost my appetite for stocks and bonds. In one investment account (FSM), I earned about S$22k (+/-2k) profit till Mar 2017, over 4 to 5 years. I invested very roughly S$100k (50k to 150k excluding money market). Low but positive return! I’m fine with that, because in this account liquidity was my priority. I put relatively small amounts into risky markets. Low risk, low return. For example,

  • very roughly $5k within that portfolio was invested in U.S. stocks. It generated roughly 50% return, better than the rest of the portfolio.
  • my big US high-yield investment (S$50k – 80k) generated very low net return perhaps 0 to 3% over 4Y
  • Some small amounts ($100 – $500) generated roughly 10% return

Around 2013/2014 I did email you about my goal to generate higher profit (like S$2k/month) from my stocks/bonds investment. I know it Didn’t work out but not sure why. I think the dividends can be relatively steady but the NAV  has been unsteady.

Now I feel in Cambodia, Manila and Singapore, property is a superior asset class for both passive income and capital appreciation. Perhaps that’s one reason I look semi-retired.