A survey of more than 500 drivers reveals that California rideshare drivers, particularly Latinx drivers, are struggling to access health insurance and a safe workplace.

By Eliza McCullough and Brian Dolber of Rideshare Drivers United*

In 2020, Uber, Lyft, DoorDash, and other tech industry giants led a referendum campaign to exempt themselves from classifying their workers as employees under a California state law known as AB5. Spending a record-shattering $220 million, the companies argued that Proposition 22 would protect California’s app-based workers’ “flexibility” while providing benefits, including health insurance stipends, and safety trainings. Proposition 22 passed on the November 2020 ballot, with 58 percent of the vote. 

In fact, the companies’ victory stripped drivers of basic employment rights, including health-care benefits, an hourly minimum wage, and health and safety standards. Labor law professor Veena Dubal called Proposition 22 “the most dangerous law to workers since Taft-Hartley,” which dramatically restricted unions, arguing that it sets a dangerous precedent for employment standards across industries. 

While the industry campaign focused on Prop 22’s worker protections, these protections are narrowly defined in the law and are not equal to the legal protections given to employees. Drivers are eligible for a partial stipend to cover health insurance premiums, and only if they meet multiple qualifications. [1] Prop 22 also required that companies administer safety trainings to all drivers, which must include information about how to report instances of sexual harassment or assault. This requirement, however, is much weaker than protections employees have under the Occupational Safety and Health Act. With the outbreak of the coronavirus, the loss of guaranteed health insurance and workplace safety standards have caused unprecedented health risks for drivers.

To understand whether drivers are accessing benefits, we conducted a survey of California-based drivers who are members of Rideshare Drivers United (RDU), asking them about their access to health insurance, health insurance stipends, and safety trainings. The survey was conducted between May 19 and June 12, 2021, and was completed by 531 drivers. Given the racial inequities apparent in the survey data, we sought to better understand the experiences of drivers of color with follow-up interviews. We conducted 10 interviews with uninsured drivers of color who have driven since January 2021. Two of these interviews were conducted in Spanish, with primarily Spanish-speaking drivers. See the endnotes for the Spanish version of quotes from these interviews.

Our survey revealed the following:

• Just 10 percent of respondents are receiving a stipend while 40 percent of respondents either never heard about their ability to qualify for the stipends or weren’t sure if they had received notification. 
• Drivers are either turning to public health-care options or forgoing health insurance altogether: Twenty-nine percent of respondents rely on Medi-Cal. Sixteen percent of all respondents are uninsured which is double the national uninsurance rate. 
• Latinx respondents are less likely to know about the stipends and are also more likely to be uninsured. 
• One in six respondents have not received a safety training from a rideshare or delivery company.

Many drivers we interviewed expressed frustration with the challenges in getting insurance under Prop 22, and most saw it as part of a larger pattern of deception and disregard for the workforce by Uber and Lyft. In some cases, drivers reported significant hardship in obtaining medical care. 

To immediately improve access to health care and workplace safety, we recommend removing health-care stipend restrictions, improving transparency of stipend rollout, targeting outreach to drivers who are more likely to be uninsured, and improving implementation of safety trainings. Long-term policy changes are also needed to create a rideshare industry that provides quality jobs. California legislators should repeal Prop 22 and other state legislators should prevent the passage of Prop 22 clones. The federal government also has an important role to play in ensuring just working conditions and a living wage for all gig workers through policies such as the PRO Act as well as a single-payer, national health insurance program.

A majority people-of-color and immigrant workforce.

Among our survey respondents, 65 percent are people of color, 52 percent were born outside the US, and 37 percent speak a language other than English as their primary language. Eighty-five percent of respondents drive for Uber, 68 percent drive for Lyft, and 59 percent of respondents drive for a food delivery service (like Uber Eats, Postmates, or DoorDash). Sixty-six percent of respondents drive for more than one platform and 75 percent have driven since January 1, 2021 when Prop 22 took effect. Fifty-one percent of respondents were over the age of 50 and 21 percent of respondents were over age 60, making their access to health insurance particularly important. There is no quality source of driver demographic data to assess the representativeness of this sample. However, a recent study of San Francisco drivers shows that like our respondent population, the majority of drivers are people of color, immigrants, over 30 years old, and drive for multiple platforms.

Uber and Lyft are failing to adequately notify their drivers about their ability to qualify for health insurance stipends.

Forty percent of drivers surveyed do not recall being notified about the stipends, with large differences across racial/ethnic groups. Latinx drivers are least likely to know about the stipends: about half of Latinx drivers don’t recall receiving any notification or aren’t sure.

One 31-year-old male Latinx driver in Los Angeles noted, “No one ever reached out and said what it was.” The lack of communication from the companies does not surprise him. “To be honest, they don’t care about drivers. I knew [the promises of Prop 22 weren’t] going to come true.” 

Those who were notified said they received emails or text messages from the companies. Information alone, however, has not meant accessibility. For example, one 36-year-old male, Spanish-speaking driver in Los Angeles, said, “I received an email with the information. On the app there is also the hours tallied that you need in order to qualify for the voucher. I also worked DoorDash during the pandemic. I was jumping all over the platforms, Uber, LYFT, DoorDash. With Uber I have to spend 20 hours with a passenger to qualify, weekly. They lied to drivers about the medical insurance because I'm out here working and I don’t have insurance.” [2] Narrow eligibility requirements, on top of poor communication, has made accessing insurance stipends difficult for many drivers, especially drivers of color. 

Many drivers are ineligible because they have seen their income decline during the pandemic, and thus have reduced their hours. One 49-year old male driver in Los Angeles, and his 18-year old son, have both been without insurance for nine months for this reason. “The pricing has gone down to 50 cents [per mile], so I’m very rarely driving these days,” he said. 

While he did not vote for Prop 22, he supported it. “I thought I’d get free insurance,” he said. “I feel stressed.” He says his son had a medical emergency, and he had to rely on Medi-Cal, the public insurance program, to cover expenses. “I’m worried about me. I’m almost 50 and I don’t know what’s going to happen if I just keep driving for Uber and Lyft.” 

The 36-year-old male, Spanish-speaking driver in Los Angeles noted, “Drivers feel duped. These companies spent so much money on propaganda. They control the platform. As drivers we have no control. These changes from the companies look cute until the truth is revealed. The hours needed to qualify are too much for what is fair. They lied to us. Uber has been making too many changes without input from drivers.” [3]

One 66-year-old male driver in the San Diego area says he does not drive enough to receive a stipend because he took on an additional job to make ends meet. He says he is fortunate to live in Tecate near the US-Mexico border. He crosses the border to receive affordable care. “Some of the best doctors are in Mexico,” he said. “If you wait 15 minutes it’s too long.”   

Among survey respondents who have driven since Prop 22 took effect and don’t receive health insurance through a public program or their spouse, only 19 percent are actually receiving health-care stipends. People who identify as multiracial or a racial group outside of those listed on the survey were least likely to receive a stipend. Even if only 50 percent of drivers are meeting Prop 22’s engaged-time qualifications (an estimate we think is conservative), a shockingly low share of drivers are receiving health care stipends. 

Some drivers also said that the stipends are too low to cover expenses. One 53-year-old male driver in Sacramento has been uninsured since 2010 and has had significant medical expenses over the years, including dental work and kidney stones. But he says even with the stipend, an insurance plan is still too expensive because the stipend only covers a portion of the premium. “I refuse to pay for something like that,” he said. “I’m not going to pay to live. I can’t afford it.” He noted that his car payments eat up much of his income, making insurance unaffordable.

Latinx drivers are the least likely to be insured among all racial/ethnic groups: a quarter of Latinx drivers do not have health insurance.

The lost right to health insurance caused by Prop 22 has forced many drivers to forgo health insurance: sixteen percent of drivers are uninsured, which is twice as much as the national uninsurance rate. Latinx drivers are most likely to lack insurance, with a quarter of respondents indicating that they are uninsured. 

One 25-year-old male, Spanish-speaking driver in Los Angeles, said, “I do not have health insurance, I haven't had it since I worked with Uber. I've worked three years here in the US, the whole time I've been with Uber.” [4]

The 36-year-old male, Spanish-speaking driver in Los Angeles noted he has been without insurance for a year and a half. He said, “I'm diabetic. I have to prepare my medicine. If I don't pay I have to take on debt with the hospitals. I went to the hospital in Glendale, my bill was $900. I went recently and qualified for emergency medical care. I have gone to the emergency room twice in a year.” [5]

We found that drivers are most likely to rely on the public system: nearly one-third of respondents get health insurance through Medi-Cal. This finding indicates that many drivers are also struggling financially as Medi-Cal is primarily reserved for people below 138 percent of the poverty line. We also found that half of all respondents receive insurance through Medi-Cal, Medicare, or a partner or spouse, which automatically disqualifies them from receiving health-care stipends. Through these narrow requirements, Prop 22 allows Uber and Lyft to save billions on the health insurance costs that they were required to pay before the legislation was enacted.

Uber and Lyft are failing to provide drivers with adequate safety protections.

In lieu of legally mandated health and safety protections guaranteed to employees, Proposition 22 mandates safety training for app-based workers. Ninety-three percent of our 531 respondents had driven since January 1, 2021, when Proposition 22 took effect. Therefore, Uber and Lyft are required to provide these drivers with safety trainings. However, the companies have failed to provide a training to one in six drivers who responded to our survey. We also found that drivers who identify as multiracial or as a racial category not included in the survey were least likely to have received a training than drivers of other racial groups. This oversight is particularly harmful to women and LGBTQ drivers, who are more likely to experience harassment and violence while working. Without adequate training on how to respond to and report instances of harm, drivers are at risk of danger while on the job. 

Policy changes are urgently needed to increase workplace safety and access to health care for rideshare drivers.

Our study reveals that the rollout of protections outlined in Proposition 22 is unpredictable, uneven, and inadequate. Rather than rectifying the problems app-based drivers face, Prop 22 has intensified drivers’ vulnerability to health and safety risks as well as feelings of confusion and disillusionment. This has been particularly acute among Latinx drivers, who are the least likely to know about the health-care stipends and be insured. Rideshare companies and regulatory agencies must take immediate steps to improve access to health care and workplace safety for drivers. 

• Companies must remove restrictions on the health-care stipend. The stipend should cover 100 percent of the average monthly premium for a Covered California Bronze plan. Drivers’ total work time, rather than engaged work time, should be counted when calculating stipend qualification. 
• Regulatory agencies must improve transparency of stipend rollout by requiring that companies report the percentage of drivers who receive stipends disaggregated by race and ethnicity on a quarterly basis to ensure that everyone who can qualify for a stipend is actually receiving one. 
• Uber, Lyft, and other companies need to provide targeted outreach to drivers who are more likely to be uninsured. Information about how to qualify for and receive a health-care stipend should be available in multiple languages and formats. 
• Rideshare companies must improve implementation of safety trainings by ensuring that all drivers receive trainings and providing public data on the percentage of drivers who have completed trainings. These trainings should also highlight information about how to report instances of sexual assault or harassment.

While these changes will immediately improve working conditions for millions of drivers, long-term policy action must be taken to create a rideshare industry that benefits everyone. 

• California legislators must repeal Prop 22 and reclassify rideshare drivers as employees, restoring all labor rights stripped with its passage. Uber, Lyft, and other gig companies are already funding campaigns for legislation identical to Prop 22 in New York, Massachusetts, Illinois, and other states nationwide. 
• State policymakers and labor advocates must protect crucial rights for drivers and prevent the passage of this legislation. 
• Even without the reclassification of drivers as independent contractors through this legislation, current protections are not enough: federal policymakers must ensure just working conditions and a living wage for all gig workers through policies such as the PRO Act. 
• Policymakers should establish a single-payer, national health insurance program alongside expanded pathways to citizenship to provide everyone in the US with comprehensive coverage to ensure that workers across all industries have access to free, quality health care. 

* Brian Dolber is an Associate Professor of Communication at California State University San Marcos, and an organizer with Rideshare Drivers United. Rideshare Drivers United is an independent association of US rideshare drivers coming together to demand higher pay and workplace rights for all rideshare drivers.

This survey is the first in a series of analyses co-produced by the National Equity Atlas and Rideshare Drivers United examining the impacts of Prop 22 on rideshare drivers. The authors thank Sarah Treuhaft and Michelle Huang of PolicyLink, Carla Tapia of Rideshare Drivers United, and Justin Scoggins of Equity Research Institute. 

Notes

(1) Proposition 22 requires rideshare and delivery companies to pay a monthly stipend of 82 percent of the average monthly premium for a Covered California Bronze plan (the lowest tier of plans available through the statewide exchange) for drivers averaging more than 25 hours per week in engaged time. Engaged time is defined as time drivers spend from when they get a ride to when they drop a passenger at their destination and does not include time spent in between rides. For drivers averaging at least 15 but less than 25 engaged hours, companies are required to pay a stipend of 41 percent of the average premium. Drivers who work less than 15 hours of engaged time per week do not qualify for a stipend and the same goes for drivers who receive health insurance through Medicare or Medi-Cal, their partner or spouse, or another job. 

(2) “Recibí un correo electrónico con la información. En la aplicación también están las horas contabilizadas que necesita para calificar para el cupón. También trabajé en la aplicación durante la pandemia. Estaba saltando por todas partes las plataformas, Uber, Lyft, DoorDash. Con Uber tengo que pasar 20 horas con los pasajeros para calificar, semanalmente. Mintieron a los conductores sobre el seguro médico, porque estoy aquí trabajando y no tengo seguro.”

(3) “Los conductores se sienten engañados. Estas empresas gastaron mucho dinero en propaganda. Controlaban la plataforma. Como los conductores no tienen control. Estos cambios de las empresas se ven lindos hasta que se revela la verdad. Las horas necesarias para calificar son demasiadas para lo que es justo. Nos mintieron. Uber ha estado haciendo demasiados cambios sin imputación de los conductores“

(4) “No tengo seguro de salud, no lo he tenido desde que trabajé con Uber. He trabajado tres años aquí en los Estados Unidos, todo el tiempo que he estado con Uber.”

(5) “Estoy sin seguro y soy diabético. Tengo que preparar mi medicamento. Si no pago tengo que endeudar con los hospitales. Fui al hospital en Glendale, mi factura era de 900 dólares. Fui recientemente y calificé para emergencia médical. He ido a la sala de emergencias dos veces en un año.”

Dear Atlas users,

Even as stay-at-home ordinances end and businesses reopen, communities across the country continue to struggle with the health and economic impacts of Covid-19. With nearly 9.5 million people still unemployed, targeted solutions for those most impacted by the pandemic are as crucial as ever. The Atlas team is focused on supporting advocates to advance an equitable recovery and shared prosperity. Here are a few updates:

New Ready-to-use Tableau Workbooks on the Racial Equity Data Lab

We’re excited to announce the addition of four new Tableau-ready datasets on the Racial Equity Data Lab: Poverty, Car Access, Working Poor, and Educational Attainment. Each workbook has built-in features that allow you to access and explore Atlas data in Tableau Public, customize your own data charts, and create a Tableau dashboard or factsheet for your community. Visit the Lab to learn how to access Tableau Public for free, check out our gallery, and explore resources to help you craft your own equity data visualizations. Stay tuned for additional tools and updates from the Lab!

Updated Rent Debt Dashboard Supports State and Local Efforts to Protect Covid Impacted Renters

Last week, we released new national and local data on our Rent Debt Dashboard, produced in partnership with with Right to the City Alliance. As of the beginning of June, 5.8 million renters — overwhelmingly low-income households of color who have recently lost employment — owe more than $20 billion in back rent. With the federal eviction moratorium scheduled to expire at the end of July, clearing this debt is urgently needed to prevent an eviction crisis and make equitable recovery possible. See the data for your community on the dashboard and check out our updated analysis.

In the News

Dozens of news sources covered our Rent Debt Dashboard this month, including San Francisco Chronicle, Los Angeles Times, ABC News, NBC News, Mercury News, BET, KQED, and more. Augusta Chronicle, Journal of Olympia, Lacet, and Tumwater, and St. Louis American lifted up findings from Atlas indicators. Finally, SF Public Press highlighted findings from our report on California rental assistance, produced in partnership with BARHII and Housing Now. See a full list of media coverage here.

- The National Equity Atlas team at PolicyLink and the USC Equity Research Institute (ERI)

Dear Atlas users,

We’ve had an exciting month, from launching the Racial Equity Data Lab to equipping housing advocates across the country with new data on the Covid-driven rent debt crisis. As summer kicks off, we remain focused on producing research and data tools to advance an equitable recovery and shared prosperity. Here are some updates:

Clearing $19 Billion in Back Rent Urgently Needed for Equitable Recovery

This week, we released new national and local data on our Rent Debt Dashboard, produced in partnership with with Right to the City Alliance. As of the end of April, 5.8 million renters — overwhelmingly low-income households of color who’ve lost employment income during the pandemic — owe nearly $19 billion in back rent. With the federal eviction moratorium scheduled to expire at the end of June, clearing this debt is urgently needed to prevent an eviction crisis and make equitable recovery possible. In California, our data was included in a report from Housing NOW, BARHII, and PolicyLink about how the state can strengthen its rental assistance programs. See the data for your community on the dashboard and check out our updated analysis. 

Rent Debt Data Supports “Cancel the Rent” Campaign in Oregon

In partnership with Oregon’s Community Alliance of Tenants, the Atlas team released a new fact sheet on rent debt and households behind on rent in Oregon. Even as economic recovery is picking up, in Oregon one in 10 renter households, many of whom are people of color and have low incomes, still owe a total of $170 million in back rent. These renters were the hardest hit by pandemic shutdowns and layoffs, underscoring the continued need for renter protections and rent cancellation as part of an equitable recovery. The new data were presented at the Oregon Cancel the Rent Digital Town Hall alongside stories and learnings from tenant leaders. You can find a recording of the town hall here.

Getting Started in the Racial Equity Data Lab: Create Your Own $15/Hour Fact Sheet

Last month, we launched the Racial Equity Data Lab, a new space on the Atlas where you can create unique data displays, dashboards, and maps. The Lab has everything you need to tell your community’s equity story using Atlas data: ready-to-use datasets, data visualization basics, and a step-by-step guide to get you started. You can watch the recording from our introductory webinar here.

Join us this Thursday, June 3, at 12 pm PT for the second installment of our three-part webinar series, “Getting Started in the Racial Equity Data Lab: Create Your Own $15/Hour Fact Sheet.” Through this series, the Atlas team and our partners at Tableau and Lovelytics will walk you through each step of creating your own $15/hour fact sheet, from accessing the data to publishing a custom visualization that you can download, share, and use to advance equitable recovery strategies in your community. If you missed Part 1: Exploring Your Data, you can watch the recording or follow the instructions in the step-by-step guide on the Lab to update the data for your fact sheet. Click here to register for Part 2: Designing Your Data Viz.

Atlas Team Presents to House Committee on Ways and Means

On May 21, the Atlas team shared the National Equity Atlas with the Ways and Means Committee, the chief tax-writing committee of the US House of Representatives on a panel titled, “Measuring What we Value: Bridging Gaps in Data and Reporting on Race and Ethnicity”that included experts in disaggregated data Randall Akee, Nancy Lopez Ninez Ponce, and Rhonda Sharpe. The Committee recently created a Racial Equity Initiative to address the role of racism in perpetuating health and economic inequities. The Atlas team shared our work to highlight the power of disaggregated data to advance equitable, targeted solutions.

You’re Invited: Join the Measurable Equity One Year Challenge

Join Clear Impact and the National Equity Atlas team for a webinar on June 15 (11 am PT / 2 pm ET) to learn more about the Measurable Equity One Year Challenge. Clear Impact designed this challenge to help government, non-profit, and foundation leaders assess, plan, and advance racial equity using a suite of free resources and tools, including a Racial Equity Scorecard powered by Atlas data. Register here.

In the News

This month, U.S. News, The Intercept, Duluth News Tribune, Governing, The Daily Californian, MPR News, Berkeley News, Minn Post, and AL.com all cited findings from our Rent Debt Dashboard, on both the national and local level. StreetsBlog cited our commute time indicator, which reveals that Black workers have 12 percent longer commute times than their White counterparts. Finally, Reuters covered the launch of our Racial Equity Data Lab.

- The National Equity Atlas team at PolicyLink and the USC Equity Research Institute (ERI)

Our new rent debt dashboard, produced in partnership with the Right to the City Alliance, equips policymakers and advocates with data on the extent and nature of rent debt in their communities to inform policies to eliminate debt and prevent the specter of mass eviction. 

By Sarah Treuhaft, Jamila Henderson, Michelle Huang, Alex Ramiller, and Justin Scoggins

Mounting rent debt and the potential for mass eviction is one of the most pressing equity issues created by the Covid-19 pandemic. The vast majority of renters who are in debt are low-wage workers —  disproportionately people of color — who’ve suffered job and income losses due to the pandemic. Without sufficient eviction protection, debt relief, and financial support, these Covid-impacted renters will be left behind — deepening inequities at a moment when the federal government has prioritized addressing systemic racism and ensuring an equitable recovery.

To inform the national policy debate, as well as local and state policymaking and advocacy, the National Equity Atlas and the Right to the City Alliance have launched a new rent debt dashboard with near real-time data on the number and characteristics of renters behind on rent for the US, 45 states, and 15 metro areas.* The dashboard provides estimates of the amount of back rent owed for these geographies, as well as estimates for the number of households with debt and the amount owed for all counties in the 45 states. Drawing current data from the Census Bureau’s Household Pulse Survey and the University of Southern California Center for Economic and Social Research's Understanding Coronavirus in America survey, the dashboard data will be refreshed approximately every two weeks. Find our full methodology here.

Born out of the need for accessible, current data to inform local and state campaigns, the dashboard was produced in partnership with the Right to the City Alliance, a network of community-based organizations working in 45 cities and 26 states to prevent displacement, expand affordable housing, and build just, sustainable cities for all.

This analysis shares key insights from the dashboard, based on the March 17-29 Pulse survey, as well as action steps that local, state, and federal policymakers can take to stabilize the people most negatively impacted by the pandemic and facilitate equitable recovery by addressing the challenge of rent debt head-on.  

Rent debt continues to be a significant issue, with millions of renters — 14 percent of all renter households — currently behind on rent.

As of the end of March 2021, 5.7 million renters – 14 percent of all renter households – were behind on their rent payments, placing them at risk of eviction in the absence of strong eviction moratoria and other renter protections. For comparison, nearly 8 million households lost their homes to foreclosure due to the 2008 financial crisis.

The Pulse survey has been asking the question “Is this household currently caught up on rent payments?” every two weeks since August 2020. Nationally, the current share of renters with debt is down from a high of 19 percent in mid-January, but remains far higher than the pre-pandemic baseline. While data on rent debt is sparse, the 2017 American Housing Survey found that about seven percent of renters were unable to pay some or all of their rent. 

Among states, the current share of renters with debt ranges from a high of 22 percent in Alabama to a low of 6 percent in both Maine and Utah. Among the 15 metros included in the Pulse survey, the share behind ranges from a high of 23 percent in Miami to a low of 8 percent in Boston.

Nationally, we estimate that rent debt amounts to about $20 billion.

According to our estimates, households that are behind on rent owe $3,400 on average, for a total of $19.75 billion nationwide. As this average suggests, the majority of households that are behind owe one or two months of back rent. However, a smaller but not insignificant number of renters have not been able to pay rent for many months and owe much larger amounts. Our analysis of the University of Southern California’s Understanding Coronavirus in America national survey finds that 25 percent are one month behind and 28 percent are two months behind, 12.5 percent are three months behind, about 29 percent are between four  and 12 months behind, and 5.5 percent have not paid rent for the entire pandemic. 

The average amount owed depends primarily on local housing costs, so it varies significantly across states and metros. Among states, Hawaii has the highest average rent debt per behind household ($5,500), while Arkansas has the lowest ($2,100). At the metro level, San Francisco and Washington DC have the highest average debts ($5,300 and $5,100, respectively), while Detroit has the lowest average debt by far ($2,500), followed by Atlanta ($3,100). 

Our national estimates of rent debt fall somewhere in the middle of existing projections in terms of total debt, and on the lower end in terms of per household amount. In January, Moody’s Analytics projected that 6.3 million renters would owe a total of $33 billion in rent debt by March, at an average of $5,282 per household. Stout Analytics estimated that between two and five million renter households owed between $13 and $24 billion as of January. Both Moody’s and Stout used the Pulse survey to inform their estimates of the number of households behind. Using a very different methodology based on modeling employment losses, income supports, and spending choices at the household level, and not incorporating the Pulse survey data, the Federal Reserve Bank of Philadelphia estimated that 1.8 million renter households would owe $11 billion in rent in March, at approximately $6,100 per household. 

With the reopening of the economy, the number of renters with debt appears to be declining overall; however, it is increasing in some states and regions.

Nationwide, the share of renters with debt appears to be trending downward from a high of 19 percent in January 2021. Nearly all states and metros are following this pattern, or generally holding stable, but there are a few exceptions. The rates of renters with arrears have been increasing since late-February in Alaska, California, Florida, Nevada, Vermont, and Wisconsin. Among metros, Detroit, Miami, Riverside, and Seattle are seeing increasing numbers of renters with debt in this recent time period. It will be important to keep a close watch on these places in the coming weeks to assess the situation — particularly in Alaska, Florida, Miami, and Riverside, where rates of behind renter households are at or above 20 percent and have been rising over the past month. 

The vast majority of those who are behind on rent are low-income households who’ve lost jobs and income during the pandemic.

Today’s rent debt crisis is entirely a consequence of the pandemic’s economic fallout: 76 percent of those who are behind on rent lost employment income at some point during the pandemic. As our other research has shown, low-wage workers, who are disproportionately workers of color, were hardest hit by pandemic job losses, and it is these same households that are most likely to suffer from rent debt. Among households with rent debt, 78 percent are low-income (with earnings less than $50,000 per year) and 63 percent are renters of color. The majority (55 percent) are currently unemployed.

Renters have made tremendous sacrifices and tradeoffs to stay current on rent, including foregoing medical care, delaying payment of other bills, eating cheaper (and potentially less healthy) food, and voluntarily moving in with friends and family — increasing risk of Covid-19 exposure while losing their housing stability. One of the most surprising facts in the data is the high share of low-income renters who are paid in full: Among low-income households that lost employment income during the pandemic, 73 percent are not behind on rent. This underscores how paying rent has remained a top priority for all renters throughout the pandemic, despite the moratoria on evictions.

Rent is not the only debt accumulating for renters.

While our analysis focuses on back rent, renters’ pandemic debt crisis extends far beyond their obligations to their landlords. Many renters are borrowing from family and friends or taking on other forms of debt in order to make rent and pay for household expenses. Among households behind on rent, 44 percent borrowed from friends or family to pay rent, compared with just 16 percent of households current on rent. About 30 percent of all renter households, whether behind or current on rent, used a credit card (or some other form of debt) to pay rent. Many are behind on other bills, such as utilities or car payments. A survey of water debt in California found that 1.6 million households owed $1 billion on water bills — $500 on average.

Renters of color have been disproportionately impacted by the pandemic and are more likely to owe back rent, making them more vulnerable to eviction risk.

In the United States, renters are already a more vulnerable population as a whole: they have little housing security, paltry savings, and few legal protections from exorbitant rent increases or eviction (outside of a few states and cities with strong tenant movements). Historic and continuing housing and lending discrimination, as well as systemic inequities in our labor market, have contributed to large racial inequities in homeownership. Atlas data shows that seven in 10 White households own their homes while the majority of Black, Latinx, and multiracial households rent. 

The challenge of unaffordable rents and flat wages add to this underlying housing insecurity among renters. Renters were already in crisis when the pandemic began: about a third of White renters and just under half of Black and Latinx renters were both economically insecure (earning less than 200 percent of the federal poverty level) and rent burdened (paying more than 30 percent of their income on rent). Gender is another important axis: women of color are most likely to be rent burdened, and disproportionately face eviction.

Covid-19 added yet another layer of inequity to these preexisting disparities. Today, 11 percent of White renters are behind on rent, compared to 18 percent of Asian renters, 20 percent of Latinx renters, and 26 percent of Black renters.

Eliminating Rent Debt is an Equity Imperative and a Moral, Economic, and Public Health Necessity

Today’s rent debt crisis is a microcosm of the wretched inequality of the pandemic: millions of renter households – most of them people of color – now face the burden of owing back rent due to a public health crisis that had extremely concentrated negative economic impacts on low-wage workers. These unequal consequences are not random, but the predictable result of past policies that left millions of families with no savings to draw upon in the face of an economic shock, as well as the failed early policy response to the pandemic. Although the CARES Act provided important unemployment benefits and cash assistance as well as an eviction moratorium that helped many pandemic-impacted renters, undocumented and mixed-status families were ineligible for assistance and the moratorium ended in July, leaving renters unprotected until the CDC enacted its moratorium in early September. Moreover, absent meaningful financial assistance to pay back rent, the moratoria simply delay eviction. Yet, the federal government provided no rent relief until December, nine months into the pandemic.

The magnitude of rent debt is a crisis in and of itself and the leading indicator of a potential eviction tsunami that would be a humanitarian disaster. Rent debt adds a heavy burden onto families who are already financially insecure and struggling during the pandemic, further limiting their choices and creating additional stress. It’s also contributing to the growth of the racial wealth gap: while renters, predominantly people of color, currently hold $20 billion in debt, homeowners, who are predominantly White, saw a $1.5 trillion increase in their home equity between October 2019 and October 2020 as competition for a constrained supply of homes drove prices up. At a time when racial equity is at the forefront of the policy debate, eliminating rent debt that has unfairly and unequally accrued for people of color should be an urgent priority.

Clearing rent debt is also key to staving off the specter of mass eviction, which would directly harm economically vulnerable families and their communities and have long-term ripple effects throughout our economy. Eviction has significant negative consequences for mental and physical health, educational outcomes, and household finances. Some evicted families and individuals would become homeless, with devastating consequences for long-term health and well-being as well as significant costs for local governments. 

The health impacts of eviction and homelessness are even more severe during a pandemic. Research during the pandemic found that states that allowed evictions to proceed had more Covid infections and deaths than those with eviction moratoria. Although the vaccination campaign is in full swing and Covid cases are low in most states, there are hotspots with high infection rates and the longer-term picture remains uncertain.

Forgiving rent debt is also essential to an equitable and people-centered recovery: one in which those hardest-hit by the pandemic can fully participate and thrive.

To Build Back Better, Policymakers Must Clear Rent Debt and Prevent Eviction

Recognizing the catastrophic impact of mass eviction, policymakers have responded, albeit belatedly, by enacting eviction moratoria and establishing rent relief funds. The federal CDC eviction moratorium scheduled to expire last month was extended through June 30th, and the American Rescue Plan passed in January provided $25.1 billion for rental assistance programs as well as $350 billion in fiscal support for state and local governments, some of which could be allocated toward debt relief. The December 27 coronavirus relief bill also provided $25 billion in funding for rental assistance. 

These are important steps, and more must be done to ensure that all struggling renters emerge from this crisis safely in their homes with no debt. The eviction moratorium is far from airtight: many evictions are still proceeding, and renters need stronger protections. In addition, rent relief programs are not reaching all of those with need; these programs must be structured to meet the scale of the crisis, both to efficiently deliver resources and to ensure that resources are distributed equitably, reaching the low-income renters of color hardest hit by the pandemic who were already housing insecure before Covid-19.

As they design rent relief programs, local and state policymakers should implement policies that adhere to the following equitable, common sense principles: 

• No renter, regardless of immigration status, should be evicted or burdened with years of debt for rent that they were unable to pay during the pandemic.

• Rent debt due to the pandemic should be fully forgiven and should not be conditioned on landlords’ acceptance of funds or participation in programs.

• Financial assistance to landlords should address the fiscal needs of landlords in danger of going out of business due to lost rent, with a particular focus on keeping small community-based landlords and nonprofit affordable housing operators solvent, rather than attempting to achieve full rent replacement for all landlords. California’s program, negotiated with the state’s landlord association, provides an example: landlords receive 80 percent of back rent owed.

• Local municipalities’ authority to pass stronger eviction and debt protection laws should be preserved.

• Landlords should continue to fulfill their legal obligations to tenants regardless of whether they receive assistance, including the duty to maintain habitable premises, refrain from harassment and retaliation against tenants, and respecting tenants’ legal rights. 

For more local policy ideas and examples, see https://ourhomesourhealth.org

* The number of renter respondents to the Pulse survey for Mississippi, North Dakota, South Dakota, West Virginia, and Wyoming was insufficient to produce reliable data to include in the dashboard.

March 25, 2021

Dear Atlas users,

The Atlas team stands in solidarity with the Asian and Pacific Islander (API) community in this moment of heightened discrimination, hatred, and violence. As we reckon with our nation’s long history of racism and xenophobia, disaggregated data is crucial for advancing racial equity and justice. Here are a few updates:

Ancestry Matters: Racial Subgroup Data in the National Equity Atlas

Asian and Pacific Islander activists and organizations have warned about the ‘model minority’ myth for decades. While the API population as a whole often fares above average on socioeconomic indicators, such metrics render invisible subgroup populations within the API community who face barriers to economic opportunities and inclusion. To illustrate the diversity of experiences and outcomes within broad racial/ethnic groups, the Atlas includes subgroup data for several of our economic opportunity and connectedness indicators, including median wage, unemployment, the percentage of workers making $15/hour, disconnected youth, homeownership, and educational attainment. To view this data, navigate to your indicator of choice and then select “by ancestry” from the Breakdown menu.

New Data Shows that 1 in 7 California Renter Households Are Behind on Rent

In partnership with Housing Now!, the Atlas team released an updated fact sheet analyzing rent debt in California (also available in Spanish), as well as a rent debt fact sheet for the Bay Area. We found that over 814,000 households were behind on rent in January, or 14 percent of all renter households. Renters owe an estimated $2.4 billion in back rent (an average of $2,900 per household). Eliminating rent debt is critical to equitable recovery: the vast majority of renters with debt are low-income, Covid-impacted renters of color. The new data was featured during #TenantTuesday to raise awareness about California’s rent forgiveness program, which will provide crucial relief.

You’re invited: Using Disaggregated Data to Advance Workforce Equity

You’re invited to join the National Equity Atlas team and our partners at the National Fund for Workforce Solutions for a three-part webinar series on using disaggregated data to develop high-impact workforce strategies for racial equity. Through our Advancing Workforce Equity project, we spent two years working closely with local leaders to analyze tailored workforce data, identify the key drivers of inequity, and prioritize actionable strategies to advance equity through policy, programs, and investments. In this webinar series we’ll share the tools and approaches that guided this research, along with lessons from the field.

• Part 1: Accessing and Exploring Relevant Data from the National Equity Atlas
  April 14, 11 am – 12 pm PT / 2 pm – 3 pm ET
  This session will focus on using the National Equity Atlas to access and understand deeply disaggregated data for your city, region, or state. Register here.
• Part 2: Analyzing Systemic Drivers of Inequity
  April 21, 11 am – 12 pm PT / 2 pm – 3 pm ET
  The second session will equip attendees with strategies to analyze disaggregated data and identify the root causes of inequitable workforce outcomes. Register here.
• Part 3: Developing High-Impact Workforce Equity Strategies
  April 28, 11 am – 12 pm PT / 2 pm – 3 pm ET
  Finally, the third session of this webinar series will feature lessons and tools developed through our work with local leaders in the Advancing Workforce Equity project. Register here.

In the News

This month, news outlets including Yahoo Finance and the Washington Post covered our indicators, while The Guardian, The Mercury News, and The Press Democrat covered our analysis of renter debt in California. Find a complete list of media coverage here.

And don’t miss “Putting People First: Reimagining OUR Economy,” a recent episode of the Radical Imagination podcast featuring Manuel Pastor and Saru Jayaraman on the fight for one fair wage and a solidarity economy. PolicyLink and its partners at Unfinished invite you to reflect and respond to the question, "What does an economy that puts people first look like?" Submit your responses at RadicalImagination.us, or on social media using #RadicalImagination and #ThisIsUnfinished

- The National Equity Atlas team at PolicyLink and the USC Equity Research Institute (ERI)

The National Equity Atlas is a one-stop-shop for data and policy ideas to advance racial equity and shared prosperity. Our focus is providing equity metrics that are deeply disaggregated by race/ethnicity, gender, nativity, ancestry, and income for the largest 100 cities, 150 regions, all 50 states, and the United States as a whole.

We built this site to democratize data and make the facts accessible and actionable to everyone — including the grassroots organizations that possess invaluable firsthand knowledge of inequities yet often lack the resources to gather, analyze, and display the quantitative data so crucial to policy campaigns to address them. At the click of a button, you can see how your community is doing in comparison to other communities according to our Racial Equity Index and 30 relevant, useful, field-tested indicators of racial and economic equity.

Now we are thrilled to share the latest innovation in our suite of data and policy tools: the Racial Equity Data Lab. The Lab is a new space on the Atlas designed to help equity advocates and campaign leaders to build  custom Atlas-powered  dashboards, data displays, and maps. The Lab has everything you need to tell your community’s equity story: ready-to-use datasets, data visualization basics, and a step-by-step guide to get you started. It also includes a starter visualization that you can use as a template to create a $15/hour factsheet for your community.

Ready to dig in to the National Equity Atlas? Here are the essential features to help you explore the indicators and unlock the power of our unparalleled data disaggregation.

Next, explore the individual indicators in the Atlas. Once you are on the page for any indicator, the first interactive element you will find is the Indicator and Geography Selection Toolbar. This toolbar allows you to choose which of our 30 indicators you want to explore for any of the 272 geographies in the National Equity Atlas. To do so, follow these five steps:

• MASTER IT: Change the geography and pull up the trend data for a community. What groups are growing and which are shrinking?

2. Chart Breakdowns and Filters: Explore the Data

The Chart Breakdown and Filters feature is the true engine for data exploration in the National Equity Atlas. This is where you can disaggregate the data such as race/ethnicity, race and nativity, race and gender, ancestry, and poverty level. It is also where you can get indicator-specific breakdowns of the data, such as business ownership by race and by industry or commute time by race and transportation mode.

Take these steps to use the Chart Breakdown and Filters feature:

Here is how it looks for our Working poor indicator for the city of Albuquerque:

• MASTER IT: Explore the different breakdowns and filters for this indicator. Which groups are most likely to be working full-time but still in poverty or economically insecure (living below 200 percent of poverty) in your community?

3. Compare: See How Your Community Stacks Up

A fourth essential feature — also in the Indicator and Geography Selection Toolbar — is the Compare function. Comparison is a very important method for analyzing equity metrics, allowing you to see how your community (or a group in your community) is doing in relation to other communities (or the same group in a different community). This can help you understand the extent of disparities, assess what are the drivers of inequities, identify strategies to remove barriers, and set goals for progress on eliminating inequities.

Here is how to use the Compare function:

Note that the Compare function is not available for indicator breakdowns that contain multiple categories over multiple years (like the Race/ethnicity indicator you just looked at) because the display would not be legible.

• MASTER IT: Compare working poverty trends in your city and your state.

4. Map Filters and Full Extent: Visualizing Patterns

Mapping data by geography puts spatial inequities — which are also racial inequities, due to housing segregation and discrimination — into stark relief. The National Equity Atlas team has worked hard to create a custom mapping system that enables clear visualization of patterns across communities and correlations between race, place, and income.

Follow these steps to Map Filters and Full Extent features:

5. Downloads and Social Media Buttons: Share and Use Data Visualizations

The National Equity Atlas is a tool for community action, and we wanted to make it easy for you to use the data to highlight issues of inequity, build support for campaigns, and make your case for solutions with policymakers and others in positions of power. We also believe in open data and know that you want to be able to explore the raw data yourself. That’s why we built more sharing and download functionality into the National Equity Atlas.

Follow these steps to access our Download and Sharing features:

• MASTER IT: Download an Excel file to examine the data behind a chart or map. Post a National Equity Atlas chart or map on your Facebook or Twitter page.

6. Racial Equity Index

The new Racial Equity Index — available for all geographies in the Atlas — allows you to track how well your community is doing on a set of nine equity indicators compared with other communities (and over time). The index summarizes an inclusion score (which measures racial disparities on nine indicators) and a prosperity score (which measures overall performance levels on those same indicators), and can be further broken down into its components to help you identify the most important challenges and areas of progress to develop targeted equity strategies. You can also examine the prosperity score for each of six major racial/ethnic groups. Here is how to access the index:

Our rent debt dashboard, produced in partnership with the Right to the City Alliance, equips policymakers and advocates with data on the extent and nature of rent debt in their communities to inform policies to eliminate debt and prevent the specter of mass eviction.

By Sarah Treuhaft, Michelle Huang, Alex Ramiller, Justin Scoggins, Abbie Langston, and Jamila Henderson

Mounting rent debt and the potential for mass eviction is one of the most pressing equity issues created by the Covid-19 pandemic. The vast majority of renters who are in debt are low-wage workers — disproportionately people of color — who’ve suffered job and income losses due to the pandemic. As of August 3rd, the federal eviction moratorium was temporarily extended to October 3rd for a more narrow subset of renters. While this extended order will cover the majority of renter households, when the order expires at the beginning of October, the renter households that still hold debt and lack protection by state or local moratoria will be at imminent risk of eviction and homelessness. Allowing this eviction tsunami to take place would be a moral travesty and a policy failure that would deepen inequities at a moment when the federal government has prioritized addressing systemic racism and ensuring an equitable recovery.

To inform policymaking and advocacy to prevent eviction and eliminate rent debt, the National Equity Atlas and the Right to the City Alliance launched a rent debt dashboard in April 2021 with near real-time data on the number and characteristics of renters behind on rent for the US, most states (currently 40 states), and 15 metro areas.* The dashboard also provides estimates of the amount of back rent owed for these geographies, as well as estimates for the number of households with debt and the amount owed for all counties in the states. Drawing current data from the Census Bureau’s Household Pulse Survey and the University of Southern California Center for Economic and Social Research's Understanding Coronavirus in America survey, the dashboard data is refreshed approximately every two weeks. Find our full methodology here.

Born out of the need for accessible, current data to inform local and state campaigns, the dashboard was produced in partnership with the Right to the City Alliance, a network of community-based organizations working in 45 cities and 26 states to prevent displacement, expand affordable housing, and build just, sustainable cities for all.

This analysis shares key insights from the dashboard, based on the June 23 - July 5 Pulse survey, along with action steps that local, state, and federal policymakers can take to stabilize the people most negatively impacted by the pandemic and facilitate equitable recovery by addressing the challenge of rent debt.

This is an update to our April 21, May 25, and July 7 analyses. We will be updating our dashboard and this analysis after the August 11 Pulse data release.

Rent debt continues to be a significant issue, with 6.4 million renter households behind on rent.

As of the first week of July 2021 6.4 million renters — 15 percent of all renter households — were behind on their rent payments. The federal eviction moratorium from the Centers for Disease Control and Prevention enacted in September 2020 provided these renters with some protection from eviction but will expire on October 3. And even now, the temporary eviction moratorium order does not apply to all renter households who might be at risk. A few states and cities still have moratoria banning eviction for nonpayment of rent. However, most renters with arrears live in the vast majority of states and cities that do not have moratoria and they are at imminent risk of eviction and homelessness. As a point of comparison, nearly 8 million households lost their homes to foreclosure due to the 2008 financial crisis.

The Pulse survey has been asking the question “Is this household currently caught up on rent payments?” every two weeks since August 2020. Nationally, the current share of renters with debt is down from a high of 19 percent in mid-January, but remains far higher than the pre-pandemic baseline. While data on rent debt is sparse, the 2017 American Housing Survey found that about seven percent of renters were unable to pay some or all of their rent.

South Carolina and Georgia have the highest share of renters with arrears among the 40 states analyzed.

The share of renters who are behind on rent is much higher than the national average in some states and metro areas. Among the 40 states with sufficient data to include in our analysis, South Carolina has the highest share of renters with arrears (28 percent), and at least 20 percent of renters are behind in the states of Georgia, New York, Pennsylvania, and Tennessee. Idaho and Montana have the lowest shares of renters with debt, at 6 and 4 percent, respectively.

Among the 15 metros included in the Pulse survey, New York and Riverside have the highest share of renters with debt (24 percent), followed by Seattle (21 percent), and Atlanta and Philadelphia (both at 19 percent). Phoenix and Miami are tied for the lowest share of renters in arrears among the 15 metros (8 percent).

Nationally, we estimate that rent debt amounts to about $21 billion.

According to our estimates, households that are behind on rent owe $3,300 on average, for a total of $21.3 billion nationwide. As this average suggests, the majority of households who are behind owe one or two months of back rent. However, a smaller but not insignificant number of renters have not been able to pay rent for many months and owe much larger amounts. Our analysis of the University of Southern California’s Understanding Coronavirus in America national survey finds that approximately 28 percent are one month behind, 22 percent are two months behind, 15 percent are three months behind, and the remaining 35 percent are more than three months behind.

The average amount owed depends primarily on local housing costs, so it varies significantly across states and metros. Among states, Hawaii has the highest average rent debt per behind-household ($5,600), while Arkansas has the lowest ($2,100). At the metro level, San Francisco and Washington DC have the highest average debts ($5,800 and $5,200, respectively), while Detroit has the lowest average debt by far ($2,500), followed by Phoenix ($3,200).

Our national estimates of rent debt fall somewhere in the middle of existing projections in terms of total debt, and on the lower end in terms of per household amount. In January, Moody’s Analytics projected that 6.3 million renters would owe a total of $33 billion in rent debt by March, at an average of $5,282 per household. Stout Analytics estimated that between two and five million renter households owed between $13 and $24 billion as of January. Both Moody’s and Stout used the Pulse survey to inform their estimates of the number of households behind. Using a very different methodology based on modeling employment losses, income supports, and spending choices at the household level, and not incorporating the Pulse survey data, the Federal Reserve Bank of Philadelphia estimated that 1.8 million renter households would owe $11 billion in rent in March, at approximately $6,100 per household.

With the incipient recovery, the number of renters with debt has declined nationwide since its peak in January, but has remained at 14 percent since late March. Most states and metros are following this decline.

Nationwide, the share of renters with debt trended downward from a high of 19 percent in January to 14 percent in late March, and has held steady around 14 percent for the past couple of months. Nearly all states and metros followed this general downward trend since their peaks. Between January and the beginning of July, the rates of renters behind on rent rose in only nine states, the District of Columbia, and four metro.

Among states, Georgia saw the largest spike in arrearages (from 18 to 25 percent behind), followed by Oregon (from nine to 12 percent). Missouri saw the most improvement (from 27 to 12 percent behind).

Among metros, Seattle saw the highest increase (from 13 to 21 percent behind). Dallas saw the greatest decrease (from 27 to 10 percent).

The vast majority of those who are behind on rent are low-income households who’ve lost jobs and income during the pandemic.

Today’s rent debt crisis is entirely a consequence of the pandemic’s economic fallout: 68 percent of those who were behind on rent in May had lost employment income at some point during the pandemic, according to the May 12-24 Pulse survey which asked respondents this question. As our other research has shown, low-wage workers, who are disproportionately workers of color, were hardest hit by pandemic job losses and are most likely to suffer from rent debt. Among households with rent debt, 81 percent are low-income (with earnings less than $50,000 per year) and 64 percent are renters of color. The majority (51 percent) are currently unemployed.

Renters have made tremendous sacrifices and tradeoffs to stay current on rent, including foregoing medical care, delaying payment of other bills, eating cheaper (and potentially less healthy) food, and voluntarily moving in with friends and family — increasing risk of Covid-19 exposure while losing their housing stability. One of the most surprising facts in the data is the high share of low-income renters who are paid in full: Among low-income households that lost employment income during the pandemic, 73 percent were not behind on rent as of May (also according to the May 12-24 Pulse survey).* This underscores how paying rent has remained a top priority for all renters throughout the pandemic, despite the moratoria on evictions.

Rent is not the only debt accumulating for renters.

While our analysis focuses on back rent, renters’ pandemic debt crisis extends far beyond their obligations to their landlords. Many renters are borrowing from family and friends or taking on other forms of debt in order to make rent and pay for household expenses. Among households behind on rent, 46 percent borrowed from friends or family to pay rent, compared with just 15 percent of households current on rent. About 30 percent of all renter households, whether behind or current on rent, used a credit card (or some other form of debt) to pay rent. Many are behind on other bills, such as utilities or car payments. A survey of water debt in California found that 1.6 million households owed $1 billion on water bills — $500 on average.

Renters of color have been disproportionately impacted by the pandemic and are more likely to owe back rent, making them more vulnerable to eviction risk.

In the United States, renters are already a more vulnerable population as a whole: they have little housing security, paltry savings, and few legal protections from exorbitant rent increases or eviction (outside of a few states and cities with strong tenant movements). Historic and continuing housing and lending discrimination, as well as systemic inequities in our labor market, have contributed to large racial inequities in homeownership. Atlas data show that seven in 10 White households own their homes while the majority of Black, Latinx, and multiracial households rent.

The challenge of unaffordable rents and flat wages add to this underlying housing insecurity among renters. Renters were already in crisis when the pandemic began: about a third of White renters and just under half of Black and Latinx renters were both economically insecure (earning less than 200 percent of the federal poverty level) and rent burdened (paying more than 30 percent of their income on rent). Gender is another important axis: women of color are most likely to be rent burdened, and disproportionately face eviction.

Covid-19 added yet another layer of inequity to these preexisting disparities. Today, 24 percent of Black renters, 17 percent of Asian or Pacific Islander and Latinx renters, and 18 percent of multiracial renters are behind on rent, compared to 9 percent of White renters.

Eliminating Rent Debt is an Equity Imperative and a Moral, Economic, and Public Health Necessity

Today’s rent debt crisis is a microcosm of the wretched inequality of the pandemic: millions of renter households – most of them people of color – now face the burden of owing back rent due to a public health crisis that had extremely concentrated negative economic impacts on low-wage workers. These unequal consequences are not random, but the predictable result of past policies that left millions of families with no savings to draw upon in the face of an economic shock, as well as the failed early policy response to the pandemic. Although the CARES Act provided important unemployment benefits and cash assistance as well as an eviction moratorium that helped many pandemic-impacted renters, undocumented and mixed-status families were ineligible for assistance and the moratorium ended in July, leaving renters unprotected until the CDC enacted its moratorium in early September. Moreover, absent meaningful financial assistance to pay back rent, the moratoria simply delay eviction. Yet, the federal government provided no rent relief until December, nine months into the pandemic.

The magnitude of rent debt is a crisis in and of itself and the leading indicator of a potential eviction tsunami that would be a humanitarian disaster. Rent debt adds a heavy burden onto families who are already financially insecure and struggling during the pandemic, further limiting their choices and creating additional stress. It’s also contributing to the growth of the racial wealth gap: while renters, predominantly people of color, currently hold $20 billion in debt, homeowners, who are predominantly White, saw a $1.9 trillion increase in their home equity from the first quarter of 2020 to the first quarter of 2021 as competition for a constrained supply of homes drove prices up. At a time when racial equity is at the forefront of the policy debate, eliminating rent debt that has unfairly and unequally accrued for people of color should be an urgent priority.

Clearing rent debt is also key to staving off the specter of mass eviction, which would directly harm economically vulnerable families and their communities and have long-term ripple effects throughout our economy. Eviction has significant negative consequences for mental and physical health, educational outcomes, and household finances. Some evicted families and individuals would become homeless, with devastating consequences for long-term health and well-being as well as significant costs for local governments.

The health impacts of eviction and homelessness are even more severe during a pandemic. Research during the pandemic found that states that allowed evictions to proceed had more Covid infections and deaths than those with eviction moratoria. Although the vaccination campaign is in full swing and Covid cases are low in most states, there are hotspots with high infection rates and the longer-term picture remains uncertain.

Forgiving rent debt is also essential to an equitable and people-centered recovery: one in which those hardest-hit by the pandemic can fully participate and thrive.

For an Equitable and Just Recovery, Policymakers Must Clear Rent Debt and Prevent Eviction

Recognizing the catastrophic impact of mass eviction, policymakers have responded, albeit belatedly, by enacting eviction moratoria and establishing rent relief funds. The federal CDC eviction moratorium scheduled to expire last month was temporarily extended through October 3 for most renter households, and the American Rescue Plan (ARP) passed in January provided $21.5 billion for rental assistance programs as well as $350 billion in fiscal support for state and local governments, some of which could be allocated toward debt relief. The December 27 coronavirus relief bill also provided $25 billion in funding for rental assistance.

With the federal moratorium expiring in just a couple months and many state and local emergency rent relief programs supported by the ARP just getting off the ground, there is an urgent need to clear the debts of all tenants in need to prevent mass eviction. Throughout the pandemic, rent relief programs have not been reaching all of those in need. These programs must be structured to meet the scale of the crisis, both to efficiently deliver resources and to ensure that resources are distributed equitably, reaching the low-income renters of color who were both hardest hit by the pandemic and already housing insecure before Covid-19. Renters also need stronger eviction protections, including access to free legal assistance and eviction diversion programs. States and localities should extend their eviction moratoria until the pandemic rent debt crisis has subsided.

As they design rent relief programs, local and state policymakers should implement policies that adhere to the following equitable, common sense principles:

• No renter, regardless of immigration status, should be evicted or burdened with years of debt for rent that they were unable to pay during the pandemic.
• Rent debt due to the pandemic should be fully forgiven and should not be conditioned on landlords’ acceptance of funds or participation in programs.
• Financial assistance to landlords should address the fiscal needs of landlords in danger of going out of business due to lost rent, with a particular focus on keeping small community-based landlords and nonprofit affordable housing operators solvent, rather than attempting to achieve full rent replacement for all landlords. California’s program, negotiated with the state’s landlord association, provides an example: landlords receive 80 percent of back rent owed.
• Local municipalities’ authority to pass stronger eviction and debt protection laws should be preserved.
• Landlords should continue to fulfill their legal obligations to tenants regardless of whether they receive assistance, including the duty to maintain habitable premises, refrain from harassment and retaliation against tenants, and respecting tenants’ legal rights.

  For more local policy ideas and examples, see https://ourhomesourhealth.org

  * The number of renter respondents to the Pulse survey for Arkansas, Delaware, Maine, Mississippi, North Dakota, Rhode Island, South Dakota, Vermont, West Virginia, and Wyoming was insufficient to produce reliable data to include in the dashboard.

Dear Atlas Users,

As we close out the eleventh month of the pandemic, an equity lens remains crucial to understanding the public health and economic impacts of Covid-19 — and the path forward. The Atlas team is proud to partner with advocates, local leaders, and policymakers at all levels of government to advance an equitable recovery and build an inclusive economy for all. Here are a few highlights from our recent work:

Racial Equity Data Hub Democratizes Local Equity Data

Last week, the Tableau Foundation launched its Racial Equity Data Hub, in partnership with the National Equity Atlas. The Hub is designed to provide data and tools needed to understand racism in all of its forms and to enable movement leaders to effectively use data to advocate for change. The Atlas team worked with Tableau expert Chantilly Jaggernauth of Lovelytics to produce two visualizations to include on the Hub. Our Black Prosperity in America visualization provides information about the Black-White wage gap in cities, metros, and states — and shows how educational attainment or upskilling alone won't solve it. The other visualization presents indicators of economic and political inclusion, education, and justice for the Black population in the Bay Area. Tableau invites community members to participate in shaping the Hub’s future growth through this forum. 

How Local Leaders Are Activating the Recommendations in our Advancing Workforce Equity Reports

This month, National Fund for Workforce Solutions President and CEO Amanda Cage hosted a series of conversations with local leaders who are using our recent Advancing Workforce Equity reports to support equity-driven workforce strategies in their communities. Watch to learn more about how this work is moving forward in Boston, Chicago, Dallas, and Seattle.

Atlas Data Cited in Congresswoman Pressley’s Federal Job Guarantee Resolution

On February 18, Congresswoman Ayanna Pressley introduced a resolution on the federal government's obligation to create a Federal Job Guarantee to address the compounding effects of systemic racism, economic inequality, and climate change. The resolution cites National Equity Atlas data, noting that at least 100 million Americans live in or near poverty, and 28 percent of full-time workers earn less than $15 an hour. A Federal Jobs Guarantee would directly address these inequities by eliminating involuntary unemployment, decreasing poverty, and raising the floor for all low-wage workers while building stronger and greener communities. 

- The National Equity Atlas team at PolicyLink and the USC Equity Research Institute (ERI)

Dear Atlas Users,

We hope that you and your families are staying strong through this difficult time. Our team is in the process of determining how we can best support communities in their response to the outbreak, aligned with the solidarity economics prerogative laid out by PERE director Manuel Pastor in this this new op-ed. We hope you will join us on Friday to inform our approach.

Register Now: Community Listening Session Friday at 12 PT/3 ET
As the COVID-19 pandemic continues to unfold, its effects are highlighting and deepening the racial inequities entrenched in our economic system. We know that disaggregated data is a crucial tool to push forward policy solutions that center equity in the short-term and lay the foundation for an inclusive recovery. Please join this listening session with Manuel Pastor, Sarah Treuhaft, and others from the Atlas team from 12-1 PT/3-4 ET this Friday, April 3rd to hear how we are responding to rapidly changing conditions and share your data needs and interests to inform our approach going forward. Register here.

New Fact Sheet: Fair Labor Practices Benefit All New Mexicans
When New Mexican employers deny workers their earnings, they harm families and prevent wages from circulating through the local economy. The New Mexico Worker Organizing Collaborative (NMWOC) works to combat this wage theft, and the Atlas team worked with them to develop a fact sheet showing how Latinx immigrant and Native American workers are disproportionately vulnerable to employer theft and highlighting the challenge of weak enforcement. Our analysis found that twenty percent of open wage theft cases without any activity or investigation have been open for over a year. NMWOC will be using this data in their advocacy to protect workers and take back lost wages. Learn more here.

New Brief: Disrupting the Drivers of Inequity in Biloxi
As wages have stagnated for the majority of workers in the U.S. and inequality has skyrocketed, racial inequity has grown. In Biloxi, Mississippi, these inequities are deep, leaving many Black and Latinx households facing racial and geographic barriers to economic opportunity. The coastal community of East Biloxi has the potential to address some of these inequities through investment in the federal Opportunity Zone program. However, this will only happen if there is an intentional focus on lifting up the most vulnerable communities. Download the brief published in partnership with the East Biloxi Community Collaborative to learn more about how to leverage the Opportunity Zones program to benefit low-income residents and people of color.

Access New Local Data on Life Expectancy
Through the United States Small-Area Life Expectancy Estimates Project’s (USALEEP) new data tool, you can measure and compare differences in life expectancy in nearly every neighborhood across the country with an easy-to-use interactive map. The Robert Wood Johnson Foundation (RWJF) also released updated data for their life expectancy tool which allows users to compare life expectancy in their neighborhood to national averages. These tools will help community leaders examine the factors that may be influencing health differences – such as access to health care, affordable housing, child care, educational opportunities – and target solutions more effectively. Learn more about the USALEEP tool and RWJF tool.

Thank you for your interest in our work.

-- The National Equity Atlas team at PolicyLink and the USC Program for Environmental and Regional Equity (PERE)