The impact of student loans

Market News

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.

Student Debt Slowing New Home Buyers

Green Escrow Services | American economy

A new survey by the National Association of Realtors and SALT, an American Student Assistance program, indicates that sizeable student debt is delaying many would-be first-time home-buyers from entering the market for up to five years. Moreover, 40 percent said that student debt is preventing them from moving in to their own place after graduation.

Older millennials – 26 to 35 – and those with debts between $70,000 and $100,000, faced the most severe impact.

69 percent believe they are not financially secure enough to buy a home while a full 63 said they didn’t think they could qualify for a mortgage.

Of those surveyed most owed between $20,000 and $30,000 although 38 percent claimed their debt was $50,000 or higher.

Students’ home purchases are being delayed by up to five years as they struggle to repay loans taken out to fund their education, according to a new survey carried out by the National Association of Realtors and SALT, an American Student Assistance program.