Newest Volume of the Journal Discusses Student Loan Debt and Homeownership

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The Journal of the Center for Real Estate Studies, edited and published by the Richard J Rosenthal Center for Real Estate Studies, has released its Fall Edition, volume 4, number 1.

In her article, Student Loan Debt: One More Hurdle for First-Time Home Buyers, Jessica Lautz, Managing Director of Survey Research & Communications at the National Association of REALTORS®, discusses the hot topic of student loan debt and its effect on first time home buyers. Lautz states,

“Many studies have cited the demand for homeownership as an unwavering part of the American Dream, and that it is a long-term financial goal among “Millennials” (Burbank, J., Keely, L. 2014; Belsky, 2013). “Millennials” differ in many ways to earlier generations, they are similar in at least one important respect – they want a place they can call their own.”

Homeownership remains important to this generation, but homeownership rates are still declining and student loan debt remains a large issue for Americans. Lautz points out even as auto loans and credit card debt decreased after the 2008 U.S. recession, student loan debt keeps increasing. The statistics cited in the article help put into perspective how student loan debt is a clear obstacle to first time homebuyers:

 20% – the amount of Americans with student loan debt

 44% – the number of “millennials” with student loan debt when they purchased a home

 89% – the increase in the number of student loan borrowers between 2004 and 2014

$26,900 – average amount of student loan debt held by those with student loan debt who earned a bachelor’s degree in 2013-14

 71% – number among non-homeowners who cite student loan debt as the factor delaying them from buying a home

 63.5%– homeownership rate in the US in the first quarter of 2016 (a 48 –year low)

 32% – the share of first-time home buyers (which is the lowest share of first-time home buyers since 1987)

Lautz’s full article and the most recent Journal of the Center for Real Estate Studies can be found here.

Also featured in this volume:

    • Michael Sklarz
    • Tom Springer
    •  Elaine Worzala
    • Steven C. Bourassa
    • Donald R. Haurin
    • John C. Weicher
    • Jacqueline Dorothea Seufert
    • Jessica Lautz