The nation’s fifth-largest city, Phoenix, is also home to one of the highest eviction rates in the nation.
Rising evictions appear to be a side effect of the city’s burgeoning housing crisis amid a declining economy. A report from the Wall Street Journal released this week highlighted the trend of increased evictions, featuring some of the Phoenicians who underwent evictions recently.
Phoenix has a rate of 16 eviction filings per 100 renter households according to estimates from Eviction Lab, a Princeton University research group that tracks eviction rates in 36 major cities and 10 states across the country.
According to data pulled from American Community Survey and reported by the Eviction Lab, Phoenix has over 583,600 renter households and typical rent averages nearly $1,400 a month.
Per data acquired by Eviction Lab from the Maricopa County Justice Courts, there have been over 285,300 eviction filings since March 2020, with nearly 90,600 of those (31 percent) filed within the past year and over 6,000 (two percent) within the last month. Between January and September, there were nearly 69,000 evictions. Should these evictions keep up with the monthly average of around 7,700 evictions, there would be nearly 92,000 evictions by the year’s end.
There were about 83,200 eviction filings in 2023. The all-time total high for evictions was about 83,700 evictions in 2005. The average eviction judgment from January to September sits at over $3,100, which is less than the $3,400 average of 2023.
Nearly 39,700 of recent years’ evictions were categorized demographically as white neighborhoods, nearly 22,800 were “other” neighborhoods, and over 20,700 were Latino neighborhoods.
Phoenix Mayor Kate Gallego told the Wall Street Journal that folks should look to the state for reforms on laws allowing such a high rate of evictions.
“We don’t control evictions,” said Gallego.
The increased evictions may curb the small gains the city has made in reducing its homeless population — an aspect of the fast-growing metropolitan area that also incurred national interest.
Maricopa County’s latest Point-In-Time Homeless Count from January reported over 9,400 individuals as homeless in the Phoenix area, a decline from the January 2023 total of over 9,600.
Earlier this year, we reported that the city had spent over $180 million over the course of three years to address its homeless population.
The Arizona Department of Economic Security (ADES) did offer a rental assistance program for families and those over the age of 60 years, but applications closed in August.
ADES also offers resources for emergency short-term housing.
ADES directed those in need of assistance to visit 211, the Short-Term Crisis Services Program, or their local Community Action Agency for other support services.
Community Action Agencies can provide utility or mortgage assistance, eviction or foreclosure prevention assistance, rental deposits, and emergency shelter. ADES warned that these agencies are currently experiencing high demand.
Maricopa County has five Community Action Agencies with multiple locations providing various assistance: Maricopa County Human Services, City of Glendale Community Action Programs, City of Phoenix Human Services, City of Phoenix Family Services Centers, and Mesa Community Action Network.
Those interested in knowing which health and human services programs they qualify for may use the Arizona Self Help questionnaire.
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Landlords across America are owed more than $15.3 billion in rent arrears, and that amount is expected to hit nearly $19 billion by December, according to a report released last week by the Federal Reserve Bank of Philadelphia just as a federal moratorium on residential evictions expired.
In Arizona, residential rent debt – including utility costs normally paid to a landlord or management company- is estimated at more than $292,000 million across 43,900 households, That represents 5.9 percent of all renter households in the state, just above the national average of 5.8 percent out of 6.5 million households.
The Fed Reserve statistics are based on estimated rent arrears related directly to a loss of employment revenue during the COVID-19 pandemic. It is estimated that roughly 138,500 Arizonans -and more than another 15 million people nationwide- are in arrears under that criteria alone.
The justice courts in Arizona’s 15 counties are expecting an onslaught of new evictions filings, as well as a push for removal notices from landlords who previously filed for and received an order for eviction but were prevented from enforcement due to the moratorium implemented by the Centers for Disease Control and Prevention (CDC).
Arizona officials received nearly $1 billion in rental assistance, but agencies, renters, and landlords say the programs are paying out at a snail’s pace, leaving renters and landlords alike in a precarious financial position.
Many of the households that are expected to be evicted in Arizona in the coming weeks have reported not having another place to move to, in part due to damaged credit ratings and a loss of savings during the pandemic. On the flip side, many landlords in some parts of the state have a waiting list of prospective tenants ready with cash in hand to move in once non-paying tenants can be forced to move out.
Timed with the Fed Reserve’s July 30 report, President Joe Biden called on state and local governments to “take all possible steps to immediately disburse” the $45 billion of emergency funding approved by Congress as part of the American Rescue Plan.
“There can be no excuse for any state or locality not accelerating funds to landlords and tenants that have been hurt during this pandemic,” the president said. “Every state and local government must get these funds out to ensure we prevent every eviction we can.”
In the meantime, the Federal Housing Finance Agency is requiring all landlords of rental properties with Fannie Mae or Freddie Mac mortgages to give renters a 30-day notice to vacate before requiring them to leave, regardless of any local court-issued eviction order.
The CDC’s eviction moratorium had been extended several times before it expired July 31. The moratorium does not relieve renters of the legal obligation of paying rent, as well as any late fees, penalties, or interest. Those ancillary costs owed by renters are not included in the Fed Reserve estimates of renter debt.
The moratorium also required renters to attest to suffering a “substantial loss of household income, loss of compensable hours of work or wages, a lay-off, or extraordinary out-of-pocket medical expenses. In addition, renters were required to certify they have undertaken “best efforts to obtain all available government assistance for rent or housing.”
Renters were also required to pledge their “best efforts” toward making “as close to the full payment as the individual’s circumstances may permit, taking into account other non-discretionary expenses,” and that if evicted, they would likely become homeless.
Eviction protection was waived under the CDC moratorium for renters who violated other terms of a lease, such as being convicted of committing criminal activity on the premises, damaging the property, or violating health ordinances or building code.