A recent study conducted by the National Association of Realtors (NAR) and American Student Assistance (ASA) found that student debt is hampering people’s ability to purchase a home and even rent an apartment.
Almost 3 out of 4 non-homeowners that pay their student loans on time believe that these loan payments are preventing them from purchasing a home. More than half of these non-homeowners believe that these payments will prevent them from purchasing a home for more than 5 years.
Student debt not only delays homeownership but it even delays renting. Over 40% of borrowers postponed leaving a parent, guardian, or family member’s house due to education debt. Millennials between the ages of 18 and 26 were the most likely age group to delay moving out.
Student loan debt also impacts current homeowners who would like to purchase a new home (i.e., move-up buyers). Almost 1 out of 3 potential move-up buyers that were surveyed reported that student debt hampered their ability to purchase a new home.
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