The spread of Covid-19 has put the world at a halt. Lockdowns and closings of businesses have forced many people out of work and put the world in a state of economic uncertainty. Thus, the entire real estate and commercial finance industry are left to wonder if people are able to pay their rents.
As unemployment is on the rise, homeowners are worried about how they are going to afford their rent and expenses. Luckily for them, the government has ordered a “ $2.2 trillion stimulus package including the possibility of forbearance on federally backed mortgages and placed a nationwide moratorium on foreclosures for homes” (Panfil and Robustelli “Renters are desperate for more help” 2020).
Though the stimulus may be helpful temporarily, it still leaves room for uncertainty in the long run.
Additionally, many tenants are forced to close their businesses, yet still have to endure rent expenses. With no profit coming in, they are forced to ask landlords for rent relief.
The effects of Covid-19 have directly impacted businesses and homeowners. The U.S. Government is taking initiatives and doing their best to help, but it simply is not enough. The future of the commercial and real estate sector remains to be uncertain, as the pandemic continues to halt economic activity.
Author: Elysa Ng