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Cancelled jobless extension hit low-income rental market

Page Last Updated: Monday July 19, 2010 8:09pm PDT

Cancelled unemployment extensions are hitting the low income rental market hard. According to figures released by the University of Nevada, Reno, vacancy rates are steady Washoe County-wide at 8 percent, but low income apartments have 12 percent vacancy rates and rising.

Owners and managers have lowered rents by 25 percent or $200 over the past year, according to the report, but vacancy rates are still climbing. Some residents are making ends meet by selling cans and even their own blood to get extra cash to pay rent. Managers say they are giving free rent and even allowing renters to pay week by week.

Teriann Gibson of the Parkview Villas and Apartments says they are taking steps to keep people from going homeless: "Absolutely, we have a few people pay their rent week by week. They are robbing Peter to pay Paul. It's really quite sad."

This 12-year Keno dealer was critical of Republicans for not extending unemployment payments. "These people are putting their money back into the economy. They buy gas; we aren't sitting on our butts."

UNR's Center for Regional Studies says the climbing vacancy rates among low income rentals is troubling because low income and unemployed residents spend money on food and services and if they are leaving, that can lead to a downward spiral in the overall economy. Seventy percent of spending in the economy is consumer driven.

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