If millennials aren't buying homes, don't blame student loans, Zillow says
A couple with an associate's degree and no debt had a 70 percent chance of owning a home,… more[1]
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Student loans aren't a big hurdle to homeownership, at least for those who actually graduate with at least a four-year degree, according to real estate website Zillow[2].
The impact of hefty student loans on career and family and the pace of millennials moving into homeownership have been points of heated debate.
But Zillow says high rents, a growing problem across the country[4], can be a bigger hurdle to homeownership by making it harder to save for a downpayment. The region's hefty price tag for housing only exacerbates the situation.
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When it comes to student loans, Zillow found that the chances of a married couple with no student-loan debt owning a home was about 69.8 percent if at least one of them had a bachelor's degree. If the same couple had $30,000 in student loans, their chances of homeownership slipped just a bit, to 67.7 percent.
Student loans really hurt homeownership levels among borrowers who only got a two-year associate's degree or dropped out of college. Those individuals are less likely to get the income boost that a college education provides.
A couple with an associate's degree and no debt had a 70 percent chance of owning a home, Zillow (Nasdaq: ZG) said. That figure declines significantly as student debt grows. If that same couple has $50,000 in student debt, the likelihood they own their home plunges to 57 percent.
“College students paying their tuition with borrowed money can rest easy this fall in their dorm rooms: the income advantage of getting a degree pays off in terms of being able to buy a home in the long run,” said Zillow Chief Economist Svenja Gudell[5]. “Student debt isn’t the evil-doer it’s made out to be, at least not when it comes to homeownership.
"As long as students stay in school and get a degree, student debt doesn’t deter them from homeownership," Gudell said.
Mark covers banking and finance.
A couple with an associate's degree and no debt had a 70 percent chance of owning a home,… more[6]
Stockbyte
Student loans aren't a big hurdle to homeownership, at least for those who actually graduate with at least a four-year degree, according to real estate website Zillow[7].
The impact of hefty student loans on career and family and the pace of millennials moving into homeownership have been points of heated debate.
But Zillow says high rents, a growing problem across the country[9], can be a bigger hurdle to homeownership by making it harder to save for a downpayment. The region's hefty price tag for housing only exacerbates the situation.
Upcoming Events
When it comes to student loans, Zillow found that the chances of a married couple with no student-loan debt owning a home was about 69.8 percent if at least one of them had a bachelor's degree. If the same couple had $30,000 in student loans, their chances of homeownership slipped just a bit, to 67.7 percent.
Student loans really hurt homeownership levels among borrowers who only got a two-year associate's degree or dropped out of college. Those individuals are less likely to get the income boost that a college education provides.
A couple with an associate's degree and no debt had a 70 percent chance of owning a home, Zillow (Nasdaq: ZG) said. That figure declines significantly as student debt grows. If that same couple has $50,000 in student debt, the likelihood they own their home plunges to 57 percent.
“College students paying their tuition with borrowed money can rest easy this fall in their dorm rooms: the income advantage of getting a degree pays off in terms of being able to buy a home in the long run,” said Zillow Chief Economist Svenja Gudell[10]. “Student debt isn’t the evil-doer it’s made out to be, at least not when it comes to homeownership.
"As long as students stay in school and get a degree, student debt doesn’t deter them from homeownership," Gudell said.
Mark covers banking and finance.
References
- ^ more (www.bizjournals.com)
- ^ Zillow (www.bizjournals.com)
- ^ more (www.bizjournals.com)
- ^ a growing problem across the country (www.bizjournals.com)
- ^ Svenja Gudell (feeds.bizjournals.com)
- ^ more (www.bizjournals.com)
- ^ Zillow (www.bizjournals.com)
- ^ more (www.bizjournals.com)
- ^ a growing problem across the country (www.bizjournals.com)
- ^ Svenja Gudell (feeds.bizjournals.com)