Goodcover Weekly News Recap | Week of July 28, 2024

Welcome to the Goodcover Weekly Recap 2.0

Hey there, Goodcover Members and renters around the United States! After a brief hiatus, we’re back with renter recaps to keep you informed on the latest stories in insurance and housing – only this time, we’re doing them weekly. Let’s dive into this week’s headlines:

Homeownership Dreams Fading for Many Renters

The dream of owning a home feels increasingly out of reach for many American renters. According to a recent CNN poll, a staggering 86% of renters aspire to buy a home but find it unaffordable. Even more concerning, 54% of these hopeful homeowners believe they may never achieve their dream. The main barriers? Skyrocketing home prices and high mortgage rates are pushing homeownership further away, especially for younger renters under 45. While younger people are more optimistic about their future prospects, the reality of high prices and interest rates remains a significant barrier.

Surging Evictions and Rising Homelessness: A Growing Crisis

This week, CNN also alerted us to a troubling trend emerging in many U.S. cities – eviction rates soaring past pre-pandemic levels. Cities like Gainesville, FL, and Las Vegas, NV, are seeing significant spikes in eviction filings, with rates up 46% and 43%, respectively. The expiration of COVID-era protections and escalating rent prices leave many renters vulnerable. 

Compounding this issue, more working Americans find themselves homeless due to unaffordable housing costs, according to new reporting from The Washington Post.  Reports show a rise in homelessness among employed individuals, including roles like dog groomers, factory workers, and even plumbers. This new wave of homelessness underscores the urgent need for affordable housing solutions. High living costs and insufficient wages are trapping more working Americans in a cycle of homelessness, despite their best efforts to stay afloat.

San Francisco Leads the Way by Banning Automated Rent-Fixing Technology

In a landmark decision, San Francisco has become the first U.S. city to ban the use and sale of automated rent-fixing software, according to KRON-4. The Board of Supervisors, led by President Aaron Peskin, passed the ban to combat rent-gouging and promote housing affordability. This move follows several class action lawsuits and investigations into the negative impact of such technology on rental prices.

Automated rent-fixing software, used by 70% of multifamily rental unit landlords in San Francisco, is under fire after class action lawsuits allege price collusion among large corporate landlords. By banning this software, the city aims to reduce artificial housing scarcity and bring down rents.

Thanks for reading our weekly recap! We hope you found these stories insightful. Follow us on Instagram and chime in: how are rent prices in your city these days?

Stay safe and informed,
Team Goodcover