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Friday, March 20, 2020

Layoffs may prevent 40% of New Yorkers from paying rent, study claims

As many as 40 percent of all New Yorkers won’t be able to afford their rent after having been laid off due to the coronavirus, according to a new study.
The report, by real estate website PropertyNest, found that 38.9 percent of all New Yorkers do not have enough saved to pay a single month’s rent if they lose their jobs or their paychecks are put on hold.
Only a quarter of all New Yorkers have six months’ rent squirreled away, while just 14 percent have one month’s rent saved. The hardest hit will be women and younger adults, aged 18 to 24, the study found.
“The data shows a clear gap between the haves and have nots,” said Ruth Shin, founder of PropertyNest, which commissioned the survey of 2,048 people. “More than one-third of all New York City residents won’t be able to pay rent, and this will rise to more than half of all residents if we are in this situation for months to come.”
Thousands of New Yorkers are already out of work since the first coronavirus death in the US on March 1. Since then, cases have skyrocketed to more than 7,000, forcing public officials to take extreme measures to keep the death toll under control.
As of March 17, all Empire State restaurants were ordered closed unless they are offering food to go. That has led to thousands of restaurants layoffs across the city, including 2,000 hourly and salaried workers at Union Square Hospitality Group, which owns eateries like Union Square Cafe and Gramercy Tavern.
People who can’t pay their rent won’t be homeless anytime soon, however. On Friday, Gov. Cuomo announced a 90-day moratorium on evictions for both residential and commercial properties.
Landlords say they are bracing for tough times ahead.
“People will fall behind in rent and owners will have to carry larger arrears. Eventually people will pay their rent and make ends meet. This is not a forever problem but it is certainly a huge short term and mid-term problem,” one landlord told The Post.
https://nypost.com/2020/03/20/layoffs-may-prevent-40-of-new-yorkers-from-paying-rent-study-claims/

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