Goodcover Monthly Roundup | July 2022

Hello, and welcome to the Goodcover Monthly Roundup for July 2022.

Goodcover helps modern renters prepare for life's unexpected twists and turns by staying up to date with the latest news for tenants. Each month, we share what we’ve found with you to keep you better informed. Check out our previous recaps.

If you're a renter in the United States, you'll want to keep tabs on these topics. Here’s what’s caught our attention this month:

Study shows pandemic stimulus had no lasting effect on the most financially vulnerable: According to Bloomberg, the U.S. stimulus checks had no long-lasting effect on those living in poverty. After about four weeks, the group receiving the pandemic check showed no financial improvement over those in the same financial position who received no stimulus check. This report doesn't say that the stimulus didn't work; just that for it to significantly impact the poor, it would need to be a much more significant sum. Many Americans are still searching for relief, which brings us to our next story…

Millennials are anxious about their economic future: The New York Times recently interviewed Millennial adults (in 2022, that means people between ages 26 - 41) about the economy. If you’re in your 30s, you’ll likely relate to the first-hand accounts of job-seeking during the ‘08 recession, the crushing weight of student loans, and all the choices made to quell uneasiness about the future. The newspaper found that Millennials are experiencing higher levels of economic anxiety than previous generations at their age. Given the uncertainty, it's no wonder that there were big shake-ups to living situations during the pandemic.

Here’s who left San Francisco during the pandemic: This brings us to San Francisco. The Bay Area city, known as a cultural destination and the epicenter of the American tech industry, saw 58,000 residents leave during the pandemic. Recently released data from the U.S. Census Bureau reveals that young adults aged 20 - 34 were most responsible for the withdrawal. Many surveyed cited the tough housing market and high cost of living for their departure. San Francisco remains a highly desirable destination for those looking to pursue career dreams across many industries – in fact, USPS data shows that many of those who left really just relocated to nearby cities.

How The Federal Reserve affects your rent: If you’ve read our previous recaps, you’re aware that the Federal Reserve has raised interest in an attempt to curb inflation which has seen extensive growth in the past year. And it just increased again this week. However, increasing interest makes homeownership more unattainable, leading more potential homebuyers to remain renters. Of course, more renters mean that the demand for rental housing increases; thus, the rent cost rises with demand. And it's compounding – in Austin, for example, rent is up 108% compared to 2021. And in 2021, Austin's rent was up 48% from 2020. If you're paying 48% more one year followed by 108% more the next year, and your wages aren't keeping up, it's easy to see where that economic anxiety among Millennials is coming from.

That’s why it’s important to vote with your best interests in mind. This leads us to the next story…

California rent increases are here, but they could be worse: Since AB 1482 passed in 2019, California's total allowable rent increase gets updated every August. Due to inflation, this year's total permissible rent increase in most California cities is 10%. This month, LAist shared a few stories about how difficult it may be to keep up with that increase, which may feel daunting. But it could be much worse, especially compared to sky-high increases in other parts of the country. To help ease some of the stress, we've compiled a few tips for battling your upcoming rent increase on our blog.

Thanks for reading Goodcover’s Monthly Recap! If you like this series, be sure to check out more posts on the Goodcover blog. In July, we covered mold, extended insurance coverage, and posted our guide to getting renters insurance in Nevada.

Did we miss anything? Follow us on Twitter and let us know what you’re interested in learning.

Have a great weekend!

-The Goodcover Team

Note: This post is meant for informational purposes, insurance regulation and coverage specifics vary by location and person. Check your policy for exact coverage information.

For additional questions, reach out to us – we’re happy to help.