Renters are more likely to have lost their job or wages during the Covid-19 pandemic than homeowners, according to a new report released this week by Redin.
“The pandemic is exacerbating inequality and widening the wealth gap between those who own homes and those who don’t,” Redfin chief economist Daryl Fairweather said. Renters who have lost jobs or wages are likely dipping into savings for daily living expenses, pushing homeownership further out of reach. More homeowners have been able to keep their jobs, and many who can work remotely are cashing in their home equity to purchase a bigger, better home in a more desirable area.”
The report, based on a survey of more than 3,000 U.S. residents in October, found:
- 39 percent of renters reported a lost job or lost wages.
- 30 percent of homeowners reported lost jobs or wages.
- Overall, 32 percent of Americans say they had lost work or wages.
The survey also found that 57 percent of renters said they voted for Biden (versus 32 percent for Trump). Among homeowners, 47 percent identify as Trump voters while 46 percent identify as Biden voters.
“Renters who have faced rising housing costs without a corresponding rise in wealth from home equity are more likely to be financially worse off than they were four years ago,” Fairweather said. “The desire for change may be one reason why renters are significantly more likely to have voted for Joe Biden for president.”