According to latest financial news today, millennials today need to wait a long time for buying homes. And this all is just because they have so much of student loan debt!The generation before the Millennials in America bought a home when they were in their early 30s. But compared to this, todays Millennials are in the midst of a waiting game due to their financial worries.
According to a new joint study on millennial student debt from the National Association of Realtors, Millennials who do not own homes are delaying buying one by at least seven years. The ones who agree with the student loan problem numbered at least 83%, all of whom do not own any homes. The figure is quite higher among older millennials, especially those who are born between 1980 and 1989. Reportedly this situation is also experienced by those who have student loan debt having values more than USD 70000. This news is present on several reputed financial websites.
One of the main reasons for this situation involves the fact that people are unable to save enough. At least 85% of their people who took part in a survey have not been able to save a substantial chunk of money, and hence cannot afford the required down payment for buying homes. At least 52% of the Millennials who took part in this survey said that they also do not qualify for a mortgage as their debt to income ratio is unbalanced.
According to some hardcore research, the student loan today is a whopping 1.4 trillion, which is equivalent to at least 35% of all non-housing debt collected nationally! Four in ten home buyers have at least some student debt on their heads. Not only student loans, but rising college costs and student debt is also causing a decrease in the number of people who own homes.
Moving ahead, such factors mentioned above are of course interlinked and together are a one big reason why the last century’s last generation cannot afford homes, even if they are successful at their jobs or even family life!
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