Higher student debt burdens are one factor holding down homeownership rates for younger Americans.
Federal Reserve researchers say that as as student loan debt has risen in the past 16 years, homeownership among 24-to-32 year-olds has declined at a rate more than twice that of the population overall. For every $1,000 increase in debt, borrowers in their late 20s and early 30s experience a 1% to 2% decrease in their homeownership rate. Student debt is “a meaningful barrier” to buying a home, the report says.
In a 2017 survey conducted for the National Association of Realtors, 76% of respondents reported that their student loan debt impacted their decision to buy a home.