The cost of eviction

Written by Joe Correa

As countless reports and research show, eviction goes beyond just being a housing issue. For tenants, it disrupts nearly every area of life, from financial stability and health to employment and future housing opportunities. There is a common assumption that the fastest and most financially responsible option when rent is late or conflict arises is to evict a tenant. However, data consistently shows that eviction rarely results in financial gain for landlords and creates significant long-term harm for tenants and communities.

For tenants, eviction can lead to lasting consequences. Once an eviction filing appears in court records, it can follow someone for years and become a major barrier to securing stable housing, as many landlords screen applicants based on rental history. Eviction orders often give tenants very little time to find new housing, forcing families into unsafe, overcrowded, or temporary living situations.

In the year following an eviction, tenants experience increases in homelessness, frequent moves, declines in financial health and credit scores, and higher rates of hospital visits. A study from Yale’s Tobin Center for Economic Policy found that an eviction order increased the likelihood of using an emergency shelter by 3.4 percentage points in the year after eviction, more than a 300% increase compared to tenants who were not evicted (1). Even more concerning, the effects persisted into the second year after eviction, showing that eviction creates long-term instability rather than a short-term setback.

Research also shows that eviction negatively affects mental health, increasing social stress and depressive symptoms, especially among young, low-income adults. When housing becomes unstable, individuals are more likely to delay medical care, experience food insecurity, and struggle to maintain employment and school attendance.

But the effects of eviction do not stop with tenants. A recent research brief by Legal Services found that fewer than 10 percent of landlords successfully recover all unpaid rent, with total losses averaging between $2,500 and $8,000 once legal fees, court costs, and turnover expenses are factored in. “Landlords rarely recover all the expenses of an eviction and often end up out-of-pocket thousands of dollars. For small, independent landlords, these losses increase the risk of mortgage delinquency and financial distress”, the report continues (3).

Ultimately, data reveals the truth of promoting eviction as a solution; it creates a lose-lose scenario for tenants and landlords and the communities that they’re in. Investing in alternatives, such as right-to-counsel initiatives, rental assistance, and eviction diversion programs among other can help preserve housing stability and financial stability for both tenants and landlords.

If you or someone you know is facing eviction or housing instability, it is critical to seek help as soon as possible. Early intervention can prevent an eviction filing, protect tenant rights, and open the door to resources that keep families housed. The Waterfront Project provides free legal services and housing counseling, education, and advocacy to tenants facing housing challenges, and reaching out early can make the difference between stability and long-term harm. No one should have to navigate the eviction process alone, and help is available.