The United States government has attempted to alleviate concerns brought on by COVID-19 by issuing stimulus checks.
A $2 trillion economic relief package, known as the CARES Act, was signed into law by the White House to aid businesses and individuals. The bill, which will provide the aforementioned stimulus checks, will be sent to millions of U.S. citizens with the intended use being to pay for necessities, including mortgages.
This measure taken by the U.S. government accompanies a myriad of other federal actions set in motion in order to alleviate the pressure placed on Americans in these trying times. Other measures include the government placing a temporary pause on foreclosures and evictions for a vast majority of renters and homeowners, and also the implementation of a new mortgage forbearance initiative.
However, the question remains: how far will these checks really go for the majority of Americans? Redfin tackles this question in a new report. Specifically, Redfin uses the criteria of the max payment of $1,200 (the highest amount of stimulus payment, received by those that earn the least) to show how far such a sum would stretch for renters and homeowners living in various regions and areas of the nation.
Redfin reported that more than 75% of the nation’s renters could afford to pay a single month’s housing expenses with the max sum of $1,200, while only 50% of America’s homeowners could do the same.
The report then went a step further and highlighted via a comprehensive list what its collected data revealed about how far the stimulus finds would go in each of the 50 largest metro areas.
Each of the areas was ranked by Redfin using the percentage of homeowners who could cover most or all of their one-month mortgage payments, as well as basic utilities, with a single stimulus check of $1,200. As Redfin is aware that some households would be sent two or more checks, the company incorporated this data into its findings as well by using a calculation based on $2,400.
Regarding homeowners, it was revealed that Indianapolis, an area where the average mortgage payment is $1,254, ranked number one, followed closely by Louisville, Kentucky, and Birmingham, Alabama. Conversely, San Jose, California, where the average mortgage was a staggering $3,371, ranked last, followed closely by San Francisco and New York.