Student Debt or a Mortgage?

The home ownership rate of people under 35 is at an all time low. According to an article in the San Francisco Chronicle:

Number of the day: 27%

That’s the portion of U.S. home buyers last year who were 25 to 34 years old, the lowest level in a decade, according to the National Association of Realtors.

Wonder why that happening?

Well, that’s because two-thirds of all college graduates have student loan debt. So they can’t buy houses.

As the article explains “they’re on the hook for big student loans and can’t qualify for a mortgage. Banks have instituted tighter mortgage lending standards in the wake of the financial crisis.”

As recently as 2009, 34 percent of all housing buyers were in that age group.

Daniel Luzer

Daniel Luzer is the news editor at Governing Magazine and former web editor of the Washington Monthly. Find him on Twitter: @Daniel_Luzer