Report: Student loan debt impacting first-time home buyers

Support our flag. Get the bumper sticker. CLICK HERE

The economy and wages have improved in 2017 under President Trump, but new data reveals first-time home buyers are struggling under the weight of rising student loan debt.

The share of sales to first-time buyers fell to 34 percent in 2017, down from 35 percent in 2016, according to the National Association of Realtors’ annual Profile of Home Buyers and Sellers. That is the fourth-lowest share in the survey’s 36-year history. First-time buyers historically make up closer to 40 percent of homebuyers.

The drop in buyers is, in part, due to a rise in student-loan debt. For those who did buy, 41 percent said they had student debt, up from 40 percent in 2016. The average amount of debt also increased to $29,000 from $26,000 last year.

Coupled with rising home prices:

Home prices hit yet another new peak in August, at $282,000, according to Black Knight Financial Services. That happened after 64-consecutive months of annual home-price appreciation. Monthly gains, however, have been falling for the last five months.

Higher prices meant first-time buyers had a higher household income ($75,000) than a year ago ($72,000) and purchased a slightly smaller home (1,640-square-feet vs. 1,650-square-feet in 2016) that was more expensive ($190,000, compared with $182,500 in 2016).

For more on this story, click the "read more" button below.

READ MORE

JOIN THE MOVEMENT to SAVE THE NATIONAL ANTHEM
Please join the thousands of DML readers who have purchased a bumper sticker. CLICK HERE.

If you would like to receive Breaking News text alerts on a smartphone or tablet, download the DML APP which is completely FREE and easy to use. Go to the Google Play Store or the IOS App Store and search for DML APP. Be sure to keep the app’s notifications setting on. Another way to receive alerts is to text to 40404 the following message: follow @realdennislynch (be sure to put a space between the word follow and the @ symbol).

To see more stories like this, sign up below for Dennis Michael Lynch’s email newsletter.







 

Comment via Facebook

 

Comment via Disqus

Send this to a friend