With Restrictions Expiring, Rent Becomes Latest Coronavirus Concern

Apartment for Rent Sign
Photo credit Sparky2000/Getty Images

The rental market in California has been completely destabilized by the pandemic-related economic shutdown.

What will happen now that eviction restrictions are expiring?

"We know from the foreclosure prices that when you pause foreclosures here in California, you actually saw a better outcome than when you just allow foreclosures to happen rapidly," said Professor Gary Painter, with USC’s Sol Price School of Public Policy. "So we did a very good first step."

He told KCBS Radio we now need a plan to move forward, which will probably include some give and take on both sides - between the tenant and the landlord.

"We need to create a workout plan," Painter explained. "That workout plan usually has some combination of not everybody getting all the money that they deserved or had to pay. But it’s actually better than the alternative, which is some sort of bankruptcy."

Figuring out how to accomplish a comprehensive solution is what lawmakers are hassling over.

Painter added the federal government needs to step up and fund something.

A supplemental $600 in weekly federal unemployment benefits that helped many pay their bills expired with July. Congress remains bogged down in disagreement over a new round of aid.