I was talking to a friend the other night, and she complained that her 28 year old daughter, who has a good steady job and credit history, was still living at home because rentals are so hard to find.
I knew that the rental market was tight, but hadn't connected it to the rise in foreclosures, as much as to the difficulty that first time buyers are having in qualifying for a home loan. But this weekend's Mercury News had an article that described the problems that former homeowners are having in this market. If they have a foreclosure or short sale in their credit history, landlords and apartment managers assume that they will have other credit issues. The article cites a recent study that shows that these applicants have more than four times as many lines of credit that are three months or more delinquent. They also had three times more open credit accounts.
Whatever the reasons for all these applicants, my friend may have her daughter at home for quite a while.
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