The National Association of Realtors’ 2017 Home Buyer and Seller Generational Trends report released Tuesday shows that student loan debt is having a serious impact on borrowers who are trying to plan for the future, specifically when it comes to buying a home.
The report found that seven in ten respondents said student debt was holding them back from buying a home. Half of those surveyed predicted that it would prevent them from purchasing one for at least five years.
This is further supported by a Student Loan Report study which found that 63 percent of student loan borrowers said their debt was affecting their decisions or abilities to buy homes.
Last year, the average borrower graduated with nearly $28,000 in debt.
Lawmakers have made student loan debt a top priority, mainly because it is hindering graduates from making important life decisions, such as buying a home and a car, starting a business, getting married, and starting a family. This then has a negative impact on the economy as a whole.
But it isn’t all bad news. The National Association of Realtors’ report found that, despite the fact they have the higher balance when paying off student loans, Generation X borrowers are making some headway when it comes to home ownership: They are expected to account for 28 percent of home sales this year, with Millennials at 34 percent and Baby Boomers at 30 percent, respectively.
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