The Real Deal New York

New York rents up, credit risk down

January 27, 2014 05:30PM

Average rents were up in the U.S. in the third quarter, while credit risk for those renting across the nation was down, according to the latest data from Chicago-based TransUnion Rental Screening Solutions.

The same goes for the greater New York City area in which average rental costs grew 5.5 percent in the third quarter, to $2,520 from $2,389 year-over-year. Meanwhile, credit risk took a slight 0.4 percent dip.

Markets such as Los Angeles and Chicago saw similar credit risk improvements, the report said.

Still, the data may not mean an easier time for renters, who have been increasingly pinched, as record rents hit Brooklyn and Manhattan last year.

“When the credit risk of the population improves, property managers may be more inclined to tighten their criteria to ensure they are getting the best possible resident,” said Michael Doherty, TransUnion senior vice president said in a statement. “This is integral because a resident who ‘skips’ out on a lease can cost a property manager thousands of dollars in lost revenues.”

According to research firm Reis, rents jumped in the third quarter to $3,049 per month, up 0.9 percent from last quarter and up two percent year-over-year, as previously reported. [TransUnion]Mark Maurer