CFPB: Renter Households’ Financial Statuses More Sensitive to Public Policy Changes During the COVID-19 Pandemic

Date Published: 
October 5th, 2021

Earlier this month, the Consumer Financial Protection Bureau (CFPB) released a report measuring the effect of the COVID-19 pandemic and federal government response measures on the financial status of renters and homeowners. The research indicated that, unlike homeowners, the financial condition of renters has been more sensitive to the federal policies implemented during the pandemic. The researchers believe this is because renters are on average younger and more likely to have lower incomes relative to homeowners, resulting in larger stimulus payments and utilization of the student loan forbearance.

Some of the findings include:

  • In June 2020, 22 percent of renters with a credit record were unemployed, compared to 12 percent of homeowners.
  • Renters’ credit scores grew by 16 points during the pandemic, compared to 10 points for mortgagors and seven points for other homeowners.
  • Delinquency, credit card utilization, and credit card debt among renters appeared to move up and down in response to stimulus payments and changes in federal unemployment benefits.
  • Credit scores among renters with student debt leapt during the first months of the pandemic after the CARES Act paused federal student loan payments.
  • Delinquency among renters with children saw a considerable decline following stimulus payments, which were larger for households with children.
  • According to the U.S. Census Bureau, 16 percent of renters said that their household is not current on their rent payment as of June 2021 and as of May 2021, renters owed an estimated $29.7 billion in back rent. 

The researchers at CFPB utilized two waves of the CFPB Making Ends Meet survey and associated consumer credit data to compare the financial outcomes of renters to homeowners at the three different stages – (1) before the pandemic; (2) Spring 2020; and (3) through Spring 2021.

You can locate the full report here. 

Topic(s): 
Resource type(s): 

Sorry, this content is only available to members.

If you're a member of CLPHA, please click here to log in.

If you have not created your CLPHA.org account, it’s easy to create one. Click here for step-by-step instructions.

You can also click here to watch a webinar site tour that shows CLPHA members how to create website accounts for themselves and provides an overview of the site's functionality.

Otherwise, we invite you to learn more about the many benefits of CLPHA membership.