Student Loans Affect Americans’ Ability to Purchase a Home

Student Loans Are Among ‘Biggest Hurdles’ to Homeownership

Many Americans — and especially millennials — are burdened with large amounts of student loan debt that affect their daily lives, including their ability to purchase a home, data shows.

Student debt “is one of the biggest hurdles holding potential buyers back from being able to save for a downpayment on a home or to qualify for a mortgage due to the loan holder’s debt-to-income ratio,” according to The Impact of Student Loan Debt, a recent report from the National Association of REALTORS®. “With rising home prices and declining housing affordability, student debt greatly reduces a homebuyer’s buying power.”

NAR defines student loan debt holders as adults who hold, or have held within the last two years, student loan debt for themselves, a spouse/partner, or children/dependents. Among the report’s findings: 60% of millennials who aren’t homeowners say student loan debt is delaying their ability to buy a home, by far the most affected generation surveyed. Read More

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