Rising Tuition and Student Debt Keeping Young People from Buying Homes
Research from the Federal Reserve Bank of New York finds that student debt contributes to the inability of Millennials to buy homes. The study looks to quantify the effect $1.4 trillion of student debt has had on home buying. "As much as 35 percent of the decline in young American homeownership from 2007 to 2015 is due to higher student debt loads, the researchers estimate," Shahien Nasiripour reports for Bloomberg.
Many recent graduates have had trouble paying debts on tuition, which has risen a great deal faster than inflation. "More than half of students who left college in 2009 had either defaulted, missed at least four months of required payments, or were facing higher loan balances five years later," Nasiripour reports.