If you have read just about any financial report even pre-COVID-19 then you know there were already a good chunk of Americans living paycheck to paycheck. But this pandemic has cause increased financial stress for many areas of business and many households.
In a survey completed by Clever Real Estate on April 28, they surveyed 1000 homeowners and 1000 renters. Here are some highlight and noteworthy statistics from their April COVID-19 Financial Report
- 64% of renters are concerned about being able to pay rent in the coming months
- Home buyers were 5.5x more likely to put their buying plans on hold for the foreseeable future in April compared to March
- 33% of homeowners are concerned about their ability to pay their mortgage in the coming months
- 40% of respondents said they were receiving unemployment benefits because of job loss or other reason. More than half of those said it’s not enough to cover their expenses.
- More than 25% of people that were planning to sell their homes have put off that decision due to the pandemic. This is a sharp increase from only 3.5% in March.
- More than 50% of Americans are concerned about feeding their families
The report is worth checking out to get a better idea of American’s financial situation. If you’re planning on buying or selling a home soon these statistis could be some valuable resources for bargaining.
Yet another issue is those who are self-employed. Those that are self employed aren’t able to get unemployment benefits. I talked to one small business owner who did get access to some of the resources our state was offering for small businesses but it’s not enough. He actually said “I’ll put myself in a lot of debt before I let my business fail” This has led him to try new avenues for his business that could be new services for the future. In a way, I think the businesses that do find new ways to offer their services legally are the ones that will survey and perhaps even prosper.
Yet another small business owner I talked to owns food stands and makes their living by traveling to fairs, community events, etc With so many being canceled their income is gone. This has led many to get more creative with setting up locally, taking orders locally, and more.
Sadly, with many businesses having to close all together during the pandemic and others working at a small capacity, job availability is not always there. Even as many states and counties enter re-opening phases, business are expected to follow social distancing guidelines and run at a reduced capacity. With businesses running at only 50% capacity some small business owners are saying it’s hard to make a profit.
There are small business loans available and self employed loans for those determined to keep their business going during the pandemic. Be sure to shop around though to get the best rates.
Check your state resources for self employed and small business assistance as well. Pennsylvania did have an option for each category.
This post is sponsored by Diamond Links. Any opinions expressed are my own.