![]() JP Morgan analysts say the rising burden of student loans is making it "even more unsustainable" for young people to buy homes byAkane Otani 9:50 AM PDT March 18, 2015 Because of a growing mountain of student loan debt, young people will find it harder to buy homes in coming years, JPMorgan analysts say. The student loan debt burden rose 8 percent, to $1.16 trillion, last year. Most of that debt—65 percent—was owed by borrowers under 40 years old. College tuition has been rising faster than the rate of inflation for decades. The double blow of a younger indebted population and higher college costs means "housing is becoming even more unsustainable for first-time buyers," the analysts said in a note. "Student loan debt continues to drag on the young generation, limiting their ability to purchase homes," the analysts said. The dark blue and light grey bars, which represent borrowers under the age of 40, show the bulk of student loan debt is owed by young people. Analysts and economists have argued that student loans are dampening the millennial homeownership dream for a while now. Last year, the homeownership rate for thirtysomethings who have histories of student loan debt declined the most of any comparable age group. The share of young adults living at home is also on the rise: The share of 25- to 34-year-olds living with their parents rose to a record high of 17.7 percent for men and 11.7 percent for women in 2014, according to Census data. It might be time for Mom and Dad to clear out their basements for a new tenant.
4 Comments
10/14/2015 10:31:10 pm
The students are future generation of our country. They must concentrate on their education.
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6/20/2016 11:25:52 am
It is a pitty. Me as a student would like to be confident in my future and have good conditions for living and creating family. To my mind it is not possible if i would not have my own accomodation.
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8/20/2016 11:06:39 pm
Yes, and I am the one of them. It would be fine if I would get some home for sale, but just to buy one... hopeless.
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10/28/2017 07:36:29 am
Oh, habit is a second nature and to change it is very difficult. Good luck for you!
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AuthorL5 Real Estate Investments, LLC is a privately held investment firm focused on stable, income producing multi-family opportunities in emerging U.S. markets. Archives
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