Renters were less at risk of default nationwide in the fourth quarter of 2012 than in the same quarter of 2011, according to CoreLogic’s Renter Applicant Risk Index. And while there was significant improvement in the Southern U.S. year-over-year, risk of renter default remained higher than in other parts of the nation.
The index evaluates credit quality and risk of default among renters applying for apartments in both single and multifamily-buildings. A mark above 100 on the index indicates decreased risk, and a value below 100 indicates increased risk.
According to the data, there was an index value of 103 in the fourth quarter of 2012 compared a value of 101 in the fourth quarter of 2011. In the South, the index value was 100 in contrast to 97 in the fourth quarter of 2011.
On a quarter-over-quarter basis, the risk of default increased in nationwide in the fourth quarter 2012 compared to the third quarter of 2012, which saw an index value of 106. The increased risk from the third quarter reflects a riskier applicant pool that is typical in seasonally slower periods of applicant traffic, according to CoreLogic. –Christopher Cameron