More than a third of New Englanders may be unable to pay rent amid coronavirus shutdowns

Updated 7:30 AM; Today 7:09 AM 

 

By Michelle Williams | Michelle.Williams@MassLive.com   

As weekly joblessness claims hit all-time highs, more than a third of renters across the region are at risk of being unable to pay come the first of the month.

In a new report from the New England Public Policy Center at the Federal Reserve Bank of Boston, researchers found an estimated 36 percent of renters and 18 percent of homeowners in New England may be unable to make their housing payments.

The projected value of the combined rent and mortgage payments add up to an estimated $1.5 billion in monthly payments.

The arrival of COVID-19 cases and actions by state and local governments to slow the spread of the virus triggered a rapid deceleration of economy activity, shutting down entire industries.

Hotel occupancy in Boston dropped more than 80%. Travelers in-and-out of Boston Logan International Airport fell by more than 90%.

About 22 million Americans - 13.5% of the work force - have applied for benefits in the past four weeks amid the coronavirus outbreak that has shutdown businesses across the country.

The surge of job losses in the past four weeks marks the fastest rate reported since the nation began tracking unemployment in 1948.

As recently as February, the federal unemployment rate was at 3.5% nationwide, a 50-year low. But as the number of coronavirus cases rise and businesses face uncertainty when they will be able to reopen, job losses will continue to grow.

In Massachusetts, the number of unemployment claims continues to climb.

The state has processed 572,562 unemployment claims since mid-March — a figure representing about 16% of the total state workforce eligible for the benefits. Just over 100,000 claims were filed last week. Filings in Massachusetts peaked the last week of March, when over 180,000 residents filed for unemployment.

Workers in the service industry were hardest hit, with 53% of claims filed in Massachusetts by service workers.

Rhode Island has the highest percentage of unemployment claims of any state, double the national average. Massachusetts has the seventh highest claims in the nation.

The Federal Reserve warns the number of unemployment claims could rise even higher due to delays in processing claims and further layoffs across industries.

Workers laid off from their positions are offered some relief from federal programs.

The expansion of federal assistance programs “are likely to have a major impact on households’ ability to meet monthly housing payments,” the report said.

More than 80 million Americans have received coronavirus stimulus checks.

Most adults receive at least $1,200, while married couples who have filed their tax returns jointly will receive $2,400. Adults with children will receive $500 for children under the age of 17.

The checks are part of the $2.2 Coronavirus Aid, Relief, and Economic Security (CARES) Act hammered out by Republican and Democratic leaders and signed by President Donald Trump in late March.

Lawmakers also expanded federal unemployment relief, offering an additional $600 a week in assistance to laid-off workers, in addition to state unemployment programs.