What does student debt mean for housing affordability?

The answer might not be what you'd think
  • Is a degree worth it? Yes, the average increase in annual earnings from having a college degree would pay off the average student loan to achieve that degree in less than three years.
  • Three quarters of student loan debt holders within the age range of most first-time homebuyers have a monthly payment of less than $400. Yet, they earn more than $750 a month because of their education.
  • They have $350 more to spend on housing than they would if they hadn’t gone to college.

We hear it all the time. The burden of enlightenment, student loan debt, is preventing people from becoming homeowners. Housing and Urban Development (HUD) Secretary Castro, at a recent National Association of Realtors (NAR) event, claimed that student loan debt is the main obstacle preventing millennials from buying a home.