Student debt is delaying millennial homeownership by seven years
Millennials who don’t already own homes are delaying purchasing one for a median of seven years, according to a new joint study on millennial student debt from the National Association of Realtors and education financing nonprofit American Student Assistance.
Overall, 83% of non-home owners said they believe that student loan debt has delayed them from buying a home — and that figure is higher among older millennials (those born between 1980 and 1989) and people who have more than $70,000 in student loan debt. The report was based on the results of a survey of 2,203 student loan borrowers.
Most commonly, student debt is affecting people’s ability to save. Some 85% of respondents said they have not been able to save for a down payment because of their student loans. Additionally, nearly three-quarters of people said they’re putting off buying because their student debt makes them feel too financially insecure. More than half (52%) of respondents also said that they can’t qualify for a mortgage because of their debt-to-income ratio.
Historically, Americans have bought a home by their early 30s, but today’s millennials are playing a waiting game because they’re saddled with so much student loan debt.
Millennials who don’t already own homes are delaying purchasing one for a median of seven years, according to a new joint study on millennial student debt from the National Association of Realtors and education financing nonprofit American Student Assistance.
Overall, 83% of non-home owners said they believe that student loan debt has delayed them from buying a home — and that figure is higher among older millennials (those born between 1980 and 1989) and people who have more than $70,000 in student loan debt. The report was based on the results of a survey of 2,203 student loan borrowers.
Most commonly, student debt is affecting people’s ability to save. Some 85% of respondents said they have not been able to save for a down payment because of their student loans. Additionally, nearly three-quarters of people said they’re putting off buying because their student debt makes them feel too financially insecure. More than half (52%) of respondents also said that they can’t qualify for a mortgage because of their debt-to-income ratio.
Source: marketwatch.com
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