Amid the financial uncertainty caused by the COVID-19 pandemic, many New York tenants face the prospect of losing their homes - despite eviction moratoriums and other actions geared towards protecting NYC residents.
Unfortunately, it seems that some rental housing units are at greater risk for foreclosure than others.
Cheaper Building Owners Face Increased Financial Risk During the Pandemic
Older, less fancy, lower-rent apartments and other forms of affordable housing tend to house tenants disproportionately affected by the pandemic. Tenants who live in these types of outdated buildings - often in less desirable areas, often in need of renovations - are increasingly unable to make monthly rent payments. One study found that Class C tenants were only able to pay 54% of the total rent due in June. In July, that number slipped to 37%.
This financial stress passes to their Class C building landlords, who find themselves in a position where they may have to sell or close down their properties. This erosion of affordable housing in America will exacerbate financial issues for tenants and landlords alike after the pandemic - once the country can begin rebuilding after the current affordability crisis.
Comparing the growing numbers of Class C tenants who cannot pay rent to their higher-income neighbors only highlights the divide between affordable and luxury housing. Equity Residential, a company that owns luxury towers in New York, reported that it collected 97% of its rent during the bulk of 2020. For these landlords and tenants, the pandemic may not present a life-altering problem.
What to Do if Your Inexpensive Apartment Faces Foreclosure
For Class C tenants - those who can and cannot make rent alike - the pandemic might threaten their housing status. If you're renting a home in New York City and are worried that your lower-rent building could face foreclosure, it's important to get legal help.
An experienced New York City real estate attorney will know how to protect you throughout issues with your landlord or the financial stress of the pandemic. Contact us today to learn about your rights as a renter in NYC.