Using anonymized consumer credit record data merged with county measures of rent growth derived from detailed apartment building data, I find that credit card balances and credit card delinquencies have increased for renters more so than for homeowners in the last two years, and this difference between renters and homeowners widens in counties that experienced the sharpest growth in rents during the pandemic. The findings suggest that renters may be using credit card debt to help ease liquidity pressures from rising rents.View the Full Brief
Are Rising Rents Raising Consumer Debt and Delinquency?
14 Nov ’23
In this CFI Research Brief, I examine whether the sharp rise in rents since the start of the COVID-19 pandemic has been associated with a deterioration in the household finances of renters.