adults , at increased risk of housing instability . As a result , renter mobility and housing supply impacts are likely to disproportionately effect these communities .
The Prevailing Narrative on Eviction and Poverty Is Not Universally Held
An August 2019 study by Yale economist John Eric Humphries , et al . calls into question the prevailing narrative that evictions cause poverty . Using a collection of seventeen years ’ worth of Cook County court records , credit bureau records , and payday loans data , the study analyzed the financial strain of both evicted and non-evicted households before and after eviction court .
The authors contend that “ it is difficult to determine to what extent those associations [ between eviction and poverty ] represent causal relationships , because eviction itself is likely to be a consequence of adverse life events .” Their analysis shows , regardless of case outcome , that households in eviction court displayed signs of financial strain in the form of falling credit scores , rising collections , and increased inquiries into payday loans two to three years before an eviction case was filled . Additionally , even though eviction negatively impacts credit access and durable consumption for several years , the effects observed were relatively small compared to the financial instability of both evicted and non-evicted renters experienced in the years preceding an eviction filing . While one academic paper does not settle this housing policy debate , it shows that the narrative of eviction causing poverty is not unanimously held in academic circles .
Unfortunately , many of the policies proposed to mitigate evictions in response to the prevailing eviction narrative have unintended consequences . They tend to harm the very population of renters they are designed to help while failing to address the underlying levels of financial instability these renters experience . Extending eviction moratoria and implementing unbalanced housing policy will continue to place financial burdens on housing providers , especially mom-and-pop landlords . The US was already facing a severe housing shortage before the pandemic began and losing a significant amount of existing housing stock to foreclosure is a real possibility . The only responsible solution that addresses the needs of both renters and rental housing providers is swift , substantial and targeted rental assistance that addresses both the current and prospective rental debt . Using more band-aids will not rectify this issue .
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