London Daily

Focus on the big picture.
Friday, Oct 23, 2026

America’s Health Crisis Is Becoming a Housing Crisis

America’s Health Crisis Is Becoming a Housing Crisis

The current housing crisis could get messy quickly, but fixing it shouldn’t be complicated, if Congress intervenes. A Lot of Americans Are About to Lose Their Homes.
The COVID-19 pandemic is a historical accelerant. It has compressed 10 years of online-shopping growth into a few months, bankrupted chains that were in steady decline, hastened Democratic gains in the Sun Belt, sped up an urban exodus from America’s most expensive cities, and persuaded my grandmother to finally use Instacart. All of this was bound to happen eventually. The coronavirus just mashed its big fat thumb on the fast-forward button.

And now a housing problem years in the making is dangerously close to spiraling out of control.

Before the pandemic, half of U.S renters spent 30 percent of their income on housing. The poorest quintile of Americans spent more than half their income on rent, on average. Even in a healthy economy, housing costs were eating workers’ wages.

Then the plague hit, and low-income workers were hit hardest. With the face-to-face economy shut down, the retail and leisure industries shed tens of millions of jobs in a matter of weeks. An analysis by the NYU Furman Center found that in New York City, the households most likely to face an “economic disruption”—including losing a job, or having hours cut back—spent the highest share of their income on housing.

Without intervention, the COVID-19-induced economic crisis is in danger of becoming a housing crisis. Data on rent payments are hard to come by, but one survey has found that a third of Americans say they failed to make a full housing payment in June. By September, more than 20 million renters will be at risk of eviction, especially as eviction moratoriums come to an end. Without income, renters can't pay rent and utilities. Without monthly payments, landlords and other companies can’t make mortgages and bond payments.

Perhaps this is all starting to sound like a redux of the mid-2000s housing crisis. It’s not. The Great Recession was driven in large part by declining standards in mortgage underwriting. When the bubble burst, foreclosures soared, homes stood empty, housing prices fell, homeownership rates fell, and more people rented in dense cities.

The 2020 housing market is the opposite, in almost every way. Demand for downtown apartments is deteriorating. Sales of newly built homes rose faster in June than any month since 2005. Watchdogs perceive no trouble in underwriting. Rather than too many houses, the hot market is defined by a historic undersupply of single-family and multifamily houses, thanks to a decade of insufficient building and, now, the shutdown of new construction in much of the country.

Still, one thing unites the crises of 2020 and 2008: the urgent need for intervention by the U.S government. The current housing crisis could get messy quickly, but fixing it shouldn’t be complicated. It will just take something that, unlike public-health competence, the federal government has in nearly infinite supply: money.

In March, Congress passed the CARES Act, which distributed a onetime stimulus check to tens of millions of households, expanded unemployment benefits by $600 a week (and made them available to self-employed and gig workers), and authorized the distribution of hundreds of billions of dollars to companies to keep them from laying off their workers. Meanwhile, dozens of cities and states passed moratoriums on evictions and foreclosures. Hurried and patchy as these programs might seem, they’ve largely worked to keep people in their homes. They need to be extended imminently, or a terrible economy will get far worse.

“There are two things we need to do right now,” says Bill McBride, an economic writer at the blog Calculated Risk. “First, we need to keep doing CARES Acts until this is over. If we run the debt up $10 trillion, it will be money saved. Second, we’ve got to get a grip on the pandemic, and that probably means shutting every indoor business down for a few months again and moving as much outdoors as we can.”

Pandemics are complicated, but pandemic economics is simple. Get families cash, or people will go hungry and lose their home. Get companies cash, or firms will fire their workers and disappear from their communities. Stop the pandemic, or else suffering and devastation will continue no matter how much cash we spend. The United States has been terrible at following the third rule. But in the next few weeks, Congress has a chance to do what it does best—appropriate money. If it doesn’t, we will all accelerate into a world nobody wants to live in.
Newsletter

Related Articles

0:00
0:00
Close
Government Injects One Hundred and Forty Million Pounds to Expand Urgent Care Ahead of Winter Crisis
Department of Health Warns Further Pay Rises Will Derail National Health Service Waiting List Targets
Major Environmental Emergency Declared in South Wales Following Aerospace Kerosene Spill
Tank Barrel Production Returns to Britain as Defence Contractors Accelerate Domestic Rearmament
Government Approves Controversial Jackdaw Gasfield Development in the North Sea
National Health Service Maternity Safety Review Condemned Over Flawed Artificial Intelligence Integration
Dozens of United Kingdom Government Services Taken Offline Amid Critical Software Vulnerability
Barclays Announces Five Thousand Job Cuts Citing Artificial Intelligence Productivity Gains
Treasury Relaxes Post-Financial Crisis Accountability Rules for City of London Executives
United Kingdom Government Issues Unprecedented Guidance Urging Citizens to Stockpile Essential Supplies
United Kingdom Consumer Inflation Accelerates to Eleven-Month High Driven by Transport Costs
United Kingdom Public Sector Net Debt Breaches Three Trillion Pounds Ahead of Autumn Budget
Department for Science, Innovation and Technology Commits Fifty Million Pounds to Establish Regional Artificial Intelligence Innovation Clusters
Ofgem Directs Major Energy Suppliers to Expand Vulnerable Household Support Funds Ahead of Winter Heating Season
Home Office and National Police Chiefs Council Unveil New Intelligence-Led Strategy to Tackle Organised Immigration Crime Networks
First Minister John Swinney Secures Scottish Parliament Approval for Comprehensive Climate and Green Energy Infrastructure Strategy
National Health Service England and Trades Union Congress Finalize Agreement on Emergency Winter Staffing and Pay Frameworks
HM Treasury and Department for Business and Trade Announce Multi-Billion-Pound Sovereign Investment Pact to Spur Regional Advanced Manufacturing
Bank of England Governor Andrew Bailey Signals Potential for Faster Interest Rate Cuts as Domestic Inflation Pressures Ease Below Forecasts
Parliamentary Inquiry Highlights Urgent Need to Address Housing Shortage as Scottish Completions Hit Eleven-Year Low
United Kingdom and Singapore Sign Comprehensive Financial Agreement to Deepen Digital and Sustainable Market Ties
Greggs Announces Plan to Close Four Manufacturing Facilities and Cut Seven Hundred and Forty Jobs
International Monetary Fund Raises United Kingdom Economic Growth Forecast While Warning of Inflationary Pressures
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs Onto Gas to Lower Household Bills
Housebuilding Across Scotland Plummets to Eleven-Year Low Despite Government Pledges to Tackle National Housing Emergency
Greggs Announces Factory Closures Across Northern England and Scotland Affecting Seven Hundred Forty Jobs
United Kingdom and Singapore Conclude Eleventh Financial Dialogue in Singapore to Deepen Cooperation on Digital Finance and Capital Markets
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs to Gas Bills and Tap Windfall Profits to Lower Consumer Prices
British Broadcasting Corporation Announces Major Cost-Cutting Overhaul to Close Linear Broadcast Services for Television Channels BBC Three and BBC Scotland Alongside Digital Radio Station BBC Radio Four Extra
London Capital Markets Face Renewed Scrutiny After High-Profile Offerings Underperform Post-Listing
Green Party Wins Historic First Westminster Parliamentary By-Election in Gorton and Denton
Environment Secretary Emma Reynolds Unveils Sweeping Regulatory Overhaul for English Water Industry
United Kingdom Health Security Agency Confirms Thirty-Four Cases in Kent Meningitis Outbreak
Ministry of Defence Prepares Heat Pump Subsidy Cuts to Fund Urgent Military Modernization
British and European Union Officials Schedule Long-Awaited Bilateral Leaders Summit for November Twentieth
Bank of England Governor Andrew Bailey Urges Strict Fiscal Credibility to Protect British Bond Markets
United Kingdom Inflation Rises to Three Point One Percent Driven by Escalating Fuel Costs
Profit Warnings Among London-Listed Companies Reach Two-Year High Amid Global Energy Shocks
Chancellor John Healey Signals Targeted Tax Changes on Banks and London Corporate Offices Ahead of Budget
British Government Reallocates Twenty-Five Per Cent of International Climate Finance to Global Biodiversity Projects
Initial British Carbon Border Taxes Set to Undercut Parallel European Union Tariffs on Industrial Imports
Whitehall Prepares National Zero-Interest Loan Initiative to Accelerate Domestic Heat Pump and Solar Adoption
European Union Offers British Automakers Access to Hybrid Vehicle Trade Protections Subject to Strict Regulatory Alignment
British Probation Officers Threaten Widespread Industrial Action After Rejecting Five Per Cent Government Pay Offer
Microsoft Abandons Major British Artificial Intelligence Data Centre Citing Severe National Grid Power Constraints
United Kingdom Inflation Accelerates to Three Point Four Per Cent Ahead of Chancellor John Healey's Inaugural Autumn Budget
Surging Cloned Number Plates Severely Complicate Traffic Enforcement and Police Investigations
Mounting Opposition Challenges Planned Rollout of Autonomous Taxis Across London
Influential Think Tank Urges Rejoining European Union to Navigate Geopolitical Crises
Government Review Recommends Slashing Benefits to Fund Youth Employment Initiatives
×