Despite steep increases in rental prices, renters are less financially constrained today than they were just after the last recession, according to a new TransUnion study. The study confirmed that, on average, renters at the mid-point of 2016 were lower risk and more credit active than renters were in 2010.

TransUnion analyzed the credit behavior of 775,000 renters who moved in Q2 2009, and 631,000 renters who moved in Q2 2015, over the 12-month period post-move. TransUnion found that 38.6 percent of the 2015 renters had a prime or better credit score in 2015, compared to 26.2 percent of the 2009 cohort of renters.

To determine how renters are impacted after a move, TransUnion used its CreditVision aggregate excess payment (AEP) algorithm, which incorporates monthly payments from mortgages, credit cards and other debt obligations. A consumer with a positive AEP could take on new payments and has money available after their monthly minimum payments are made.

In 2009, 53 percent of renters had an AEP greater than $100. By 2015, the percentage of renters with an AEP of $100 or more grew to 59 percent.

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