Student debt is stopping Millennials from buying homes, study says

September 20, 2018

Student debt is stopping Millennials from buying homes, study says

CLEVELAND, Ohio -- More than half of Millennials said they knew someone who had delayed buying a home because of student debt in a recently-released study by NeighborWorks America. 

Surveying all adults, 36 percent know someone whose debt kept them from buying a house. Out of the 1,000 surveyed, 85 percent of adults and 87 percent of Millennials said they have student debt.

Buying a home is still a priority, the study found. About 80 percent of adults and 68 percent of Millennials said owning a home increases financial stability. About 75 percent of respondents viewed homeownership as part of the “American Dream.”

The top two factors for not being able to buy a home were lack of a down payment and bad credit. 

In the Midwest, buying a home is perceived as much more affordable. About 52 percent of Midwest respondents said they thought housing in their area was affordable for first-time buyers, as opposed to 35 percent in the Northeast and 37 percent in the West. 

This isn’t the first time student debt has surfaced as a major factor for delaying buying homes. A 2017 report by the National Association of Realtors found student debt delayed Millennials’ home purchase by seven years.

Loads of student debt can lead to drops in credit scores and a income-to-debt ratio that can severely limit -- if not eliminate -- their real estate options.

Do you know anyone who delayed buying a home due to student debt? Leave a comment and vote in our poll above. 

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