The impact of student loans

Zillow’s latest Housing Aspirations Report finds that the average monthly student debt payment for renters who hope to buy a home int he next year is $388. Figuring on spending no more than 30 percent of their income on combined student debt and housing, the maximum priced home they could afford would be $269,400 which represents 52.3 percent of the homes nationwide that are for sale.

Conversely, if they had no student debt they could afford a hoe worth $361,00 which is 66.4 percent of the homes currently listed for sale.

Of course, in the Bay Area the numbers are much different where buyers with student debt can only afford 11.7 percent of the homes for sale.

Nationwide, 33.9 percent of renters who say they are planning to buy a home have some form of student debt.

Leave a Comment