The New York Times ran an article that sheds further light on how unemployment benefits impact the real estate market. I briefly touched on this point in a larger article about how cutting unemployment benefits did not help the unemployed and in fact hurt the economy.
From July 2008 through December 2012, $250 billion in federally funded unemployment benefits helped homeowners avoid an estimated 1.4 million foreclosures. This shows how important unemployment benefits are to the entire economy. In fact the number of foreclosures prevented by extended unemployment benefits eclipses the 800,000 foreclosures that were prevented as of 2013 by the government’s main anti-foreclosure program, Home Affordable Modification Program, or HAMP.
The value of preventing the 1.4 million foreclosures was valued in the study at $46 billion that would have been otherwise lost on government-backed mortgages and an additional $70 billion in deadweight losses from foreclosures, including the decline in value of nearby properties and the destruction of value in deteriorating vacant homes. This is a total value of $116 billion in foreclosure prevention alone.
Beyond just helping the unemployed individual and their family stay above water, unemployment benefits help our entire economy. It is a tragedy the GOP House was so adamant about slashing benefits when they are still necessary.
If you are in Georgia and you have questions about unemployment benefits please contact Atlanta employment attorney Ben Kandy