Hot Markets Require Insanely High Credit Scores (Over 700) for Rental Approvals
When it comes to renting, it’s no secret that you need a good credit score to apply for an apartment, but there are some cities in the US where good is just not enough: your credit score has to be outstanding. Apparently a paradox, we are talking about the same places that boast some of the highest rents in the nation. In Boston, San Francisco or Seattle, renters not only have to be prepared to shell out more than $2,000 or even $3,000 per month on average, but will also have to get their credit in shape in order to get approved.
The latest research looked at the average credit score of rental applicants in the nation’s most competitive markets. Here’s what RENT Cafe found:
- Nationwide, applicants who were approved for a lease had an average credit score of 650 in 2017. Up 12 points from 2014, this number shows that the US rental market is getting more and more aggressive. If you think these credit standards are a bit harsh, try to get into a high-end building. The average credit score of renters accepted in Class A buildings is 683.
- Accepted rental applicants in cities like Boston or San Francisco exhibit exceptional average credit scores of 737 and 724 respectively. And with sky-high rents of over $3,000, these cities are starting to look like exclusive and costly markets designed for elite renters.
- High credit scores aren’t limited to expensive hubs, though. Competitive rental markets like Seattle and Oakland, which have seen rents soar by 50% over the past five years, see stellar credit scores above 700 for accepted applications as well.
- The Baby-Boomer renters are in the best credit shape with the highest average credit score among all generations, 683, followed by Millennials with 650.
You can read the full study here: https://www.rentcafe.com/blog/rental-market/credit-score-to-rent-an-apartment/.