Stagnant wage growth, underemployment, rising home prices and tight inventory have all been pinpointed as reasons why the homeownership rate for young adults remains subdued at levels not seen in decades. According to new data from the National Association of REALTORS®, you can add repaying student debt to the list of barriers holding back millennials from buying their first home.
Earlier this month, NAR released a new survey looking at the home buying opportunities of student debt borrowers who are current in their repayment. The findings affirmed the notion that repaying student debt is impacting the housing market. Nearly three-quarters of non-homeowners in the survey believed that their student debt is delaying them from buying a home, with most of them citing not being able to save for a down payment as the primary reason. Even more surprising, more than half anticipate it’ll take more than five years before they can buy.
Review NAR’s 2016 Student Debt and Housing Report to get a full grasp of how even those capable of paying their student debt on time are still struggling to buy homes. Talk to REALTORS® in your community to find out what they’re hearing from their young clients. Contact a local or state REALTOR® association to see if your area’s young adult population is having better or worse luck becoming homeowners.