U.S. Eviction Ban is Unconstitutional Says U.S. District Court-On May 5, 2021 U.S. Circuit Judge Dabney L. Friedrich ruled that the CDC order from last year violates the law. That order banned evictions based on Covid-19. The Judge stated it violates the Due Process clause of the US Constitution. The judge’s decision further states that the HHS Secretary exceeded his authority ordering this ban on evictions. The motion stated that it is impossible to know if someone has Covid-19 and if they are infecting others. This was also another reason to remove the eviction ban. There was no evidence from the Defendant (U.S. Government) that Covid-19 was being spread by people that have been evicted. The court also stated that the HHS Secretary does not have authority to create a nationwide ban.
How will this affect real estate?
This case was brought to the attention of the courts based on landlords losing money and tenants refusing to pay their rent based on this unlawful order. The 20 page decision clearly states that the CDC and the government itself does not have a way around the U.S. Constitution in creating a nationwide order to stay evictions.
This is a developing story and more than likely will have a certain appeal from the Biden Administration. It is unclear from the ruling if the order will be stayed or will be allowed now to continue to evict people that have not paid their rent.
As for what this will do for the future of real estate and the possibility of increased foreclosures and the lack of inventory remains to be seen. U.S. Eviction Ban is Unconstitutional Says US District Court:
To view the courts decision, please click here: ddc-opinion-eviction-moratorium-2021-05-05
Additional link is here: https://www.nar.realtor/sites/default/files/documents/ddc-opinion-eviction-moratorium-2021-05-05.pdf?AdobeAnalytics=ed_rid%3D2307260%26om_mid%3D4526%7CDistrict%20Court%20Decision%20on%20Eviction%20Moratorium%26om_ntype%3DBREAKING%20NEWS
This is a huge win for landlords that have not been paid rent in over a year. It also may have a positive affect on the increase of new inventory hitting an already low resale market. Buyers may benefit from having more homes hit the market for sale as well as sellers seeing an all time high for pricing and demand for homes. For those that are getting evicted, they have the chance to either get current with their unpaid rent or find another location to rent.