Brief New York City: The Cost of Eviction and Unpaid Bills of Financially Insecure Families for City Budgets (2019)
Diana Elliott, Kassandra Martinchek
Display Date
File
File
Download Report
(546.45 KB)

In 10 major US cities, financially insecure families are prevalent, and residents’ financial insecurity affects city budgets. In 2019, the costs to cities range from between $6 and $14 million in Miami to between $534 million and $1,232 million in New York City. This suggests that New York, like other cities, has an economic interest in improving residents’ financial health.

Analyses of residents’ credit health and debt can provide cities additional information about the financial health of families. New York City residents have strong credit health compared with residents in other cities, with a median credit score above the national median. Although most neighborhoods display strong credit health, in some neighborhoods, the median credit score is subprime and more than half of residents have delinquent debt. This suggests that some New Yorkers may have trouble meeting their financial obligations.

Cities can pursue initiatives that address long standing structural barriers including residential segregation, lack of access to capital flows and affordable housing, and measures that would address predatory financial practices to improve their residents’ financial health. These initiatives can be challenging to implement and require long-term investments and planning. In the meantime, cities can integrate financial coaching, counseling, credit building, and incentivized savings interventions into existing government programs into improve residents’ financial well-being and help the city meet residents where they are.

Resources:

Research Areas Economic mobility and inequality Wealth and financial well-being Neighborhoods, cities, and metros Families Housing
Tags Asset and debts Opportunity and ownership Evictions Financial stability
Policy Centers Center on Labor, Human Services, and Population Research to Action Lab