RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
RISMedia
No Result
View All Result

Rental Applicant Credit Quality Improves Nationwide for Fifth Consecutive Year, According to CoreLogic Report

Home Industry News
By RISMedia Staff
August 1, 2019
Reading Time: 2 mins read

CoreLogic® has released its 2019 Rental Applicant Risk (RAR) Report, showing the national RAR index declined by two points, compared to 2017, to 83. This indicates a decline in tenant risk, which could suggest the rental market will see an uptick in profitable lease activity. The annual report provides a benchmark of national and regional applicant traffic credit quality scores and indicates the relative risk of an applicant pool fulfilling lease obligations. The 2019 report found the credit quality of prospective property renters in the U.S. improved over the past five years across the Northeast, West, South and Midwest regions.

Data from the RAR Report shows favorable conditions for the continued improvement in rental applicant qualifications in the year ahead. Lower rental applicant risk can alleviate pain points for property managers and help avoid the risks of tenant default, and can also indicate a possible redistribution of applicants across “Middle Rent” and “Low Rent” properties following rising rent prices across the country.

“It’s encouraging to see an increase in qualified rental applicants over the previous five years, which could indicate continued improvement of economic health,” says Dr. Ralph McLaughlin, deputy chief economist for CoreLogic. “Rents have since rebounded from the Great Recession and are now growing at the same pace as house prices. However, it’s important to note that these rising rents might be causing Middle Rent applicants to apply for Low Rent properties, which can indicate that a subset of the population now is becoming priced out of the traditional rental market.”

Rent-to-income levels decreased for renters of the least expensive rentals, indicating more available capital for those applicants. Incomes rose 4.7 percent for applicants of Low Rent properties (under $750 per month), while income of applicants of Middle Rent properties (between $750 to $1,100 per month) and “High Rent” properties (over $1,100 per month) remained flat from 2017 to 2018.

The RAR Report found rental applications were down for both Middle and Low Rent properties. While Middle Rent properties increased rent by 0.7 percent to an average of $899 in 2018, Low Rent properties remained flat at an average of $675. Applications for High Rent properties, which on average increased rent prices year-over-year by 0.26 percent to an average of $1,524, were up in 2018.

Regionally, the West is below average in rental applicant risk, while the Northeast, South and Midwest are above average compared to the U.S. index value of 83. The West had the lowest index value at 73, indicating a higher potential for positive lease performance in the region. The Northeast is the second-least risky region, with a value of 85. The South and Midwest regions show higher index scores and thus illustrate lower credit quality among prospective renters.

The Index is calculated exclusively from applicant-traffic credit quality scores from the CoreLogic SafeRent® statistical lease scoring model, Registry ScorePLUS®. Registry ScorePLUS is the multifamily industry’s only screening model that is both empirically derived and statistically validated. For an interactive version of the 2019 RAR Report, which includes interactive charts and images, visit this link.

For more information, please visit www.corelogic.com.

ShareTweetShare

RISMedia Staff

Related Posts

How to Handle Tech Overload and Choose What Will Work for Your Agents
Agents

How to Handle Tech Overload and Choose What Will Work for Your Agents

August 13, 2022
Would Student Loan Forgiveness Impact the Housing Market?
Agents

Would Student Loan Forgiveness Impact the Housing Market?

August 12, 2022
The Mortgage Mix: Big Lenders Buckling and a Market Hitting Milestones
Agents

The Mortgage Mix: Big Lenders Buckling and a Market Hitting Milestones

August 12, 2022
Opportunity Zones Keep Pace with Nationwide Home-Price Growth in Second Quarter
Agents

Opportunity Zones Keep Pace with Nationwide Home-Price Growth in Second Quarter

August 12, 2022
Pros and Cons of an Adjustable-Rate Mortgage
Agents

Pros and Cons of an Adjustable-Rate Mortgage

August 13, 2022
Level Up Your Business and Catapult Your Success
Agents

Level Up Your Business and Catapult Your Success

August 12, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

There’s Gold in Them There Leads. HomeKeepr Can Help.

Does your brokerage have leads no one is working? Let’s put those leads to work! Our Moover Intelligence feature identifies... Learn more.

Business Tip of the Day provided by
REGISTER NOW

Recent Posts

  • How to Handle Tech Overload and Choose What Will Work for Your Agents
  • Would Student Loan Forgiveness Impact the Housing Market?
  • The Mortgage Mix: Big Lenders Buckling and a Market Hitting Milestones

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X