Renters are on the whole managing to improve their credit ratings, even as many struggle to cope with the financial consequences of the coronavirus pandemic.
A new analysis by RENTCafe of more than 5 million lease applications in the U.S. shows that landlords are approving new tenants with higher credit scores than in previous years. Indeed, the average credit rating of renters has risen by around one point each year since 2018, the analysis showed.
In 2020 the average credit score of renters was 638. Those tenants in high-end buildings have a higher average rating of 669, the study found.
By age group, it was found that baby boomer renters have the highest credit score at 683 points on average, while Gen Z, the youngest age group, had the lowest average at 586.
RENTCafe’s data from the U.S.’s biggest 50 cities shows that renters in the most competitive markets have scores averaging more than 700 points. Those markets include hot cities such as San Francisco, Boston, New York, Seattle and Oakland, Calif. The highest average renter credit score was 719, in San Francisco.
On the other hand, renters may have the easiest time renting in places like Arlington, Texas, which had the lowest average credit score in the nation at 580, followed by Memphis, Tenn. at 583 points and Las Vegas at 584 points.