AgentMarkets & Economy

Zillow: Student debt delays homeownership — but not by much

Those with master's degrees have best chance at ownership
  • Zillow goes against popular opinion, but points out debt does delay ownership at least a little bit.
  • Debt delaying homeownership means recent graduates won't likely purchase a home until their mid-30s.
  • The more advanced someone’s degree, the greater the odds of homeownership -- even if significant debt has been taken on.

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Straying from popular opinion, a recent Zillow report finds student loan debt doesn’t lessen graduates’ chances of owning a home, but it can delay homeownership. Zillow found that the more advanced someone’s degree, the greater odds they will own a home -- even if significant debt has been taken on. A married couple with one person holding a master’s degree and $50,000 in student loans has a 75 percent chance of homeownership. A similar household with a bachelor’s degree and $10,000 in loans has a 69 percent chance of homeownership. Student Loans and Homeownership (PRNewsFoto/Zillow) “The income advantage of getting a degree pays off in terms of being able to buy a home in the long run,” said Svenja Gudell, chief economist at Zillow. “Student debt doesn’t deter them from homeownership, although it is possible that student debt could delay homeownership.” These loans have the greatest impact on the homeownership rate of people with two-year assoc...