flexiblefullpage - default
Currently Reading

Examining Renter Credit Risk Patterns

Advertisement
billboard - default

Examining Renter Credit Risk Patterns


December 1, 2017
Desk
Photo: Pexels

Rental management companies are taking credit history and debt-to-income ratios more seriously as the share of renting households has risen to roughly 36 percent, a fifty-year high.

Similar to a FICO score, CoreLogic's SafeRent Score measuring applicants by a variety of factors such as subprime loan history, eviction and rental collections history, and application information. Higher SafeRent scores mean lower risk; average scores have been rising since 2010. A higher rent-to-income ratio is typically seen as an increased credit risk, with renters allocating more of their income to paying rent. 

The rent-to-income ratio has trended upward between 2009 and 2017, as the increase in rents has outpaced income growth. Nationally, it has increased from 25.4 percent in the second quarter of 2009 to 28.1 percent in the second quarter of 2017, a 10.6 percent increase over an eight-year period. 

Read more

Related Stories

Market Data + Trends

Homebuyer Desperation Is Leading to a Rise in Real Estate Fraud

Real estate scammers are targeting budget-conscious buyers and wreaking havoc on the for-sale market, and experts say the situation could get worse as market dynamics continue to shift

Market Data + Trends

National Home Prices Fell for the Seventh Straight Month in January

U.S. home prices are cooling as interest rates rise, and these metros are seeing the biggest price corrections

Affordability

US Housing Affordability Is Worse Now Than It Was in 2008

Measurements of housing affordability were worse in December 2022 than at any point leading up to the housing bubble in 2008, but experts say conditions will improve by the end of the year

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category




Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.