Good news, Americans still aspire to homeownership. Bad news, student loan debt is an increasing and significant roadblock to achieving that American Dream. According to NeighborWorks National Housing Survey, 89% of adults say homeownership is important but 30% of them knew someone who delayed the purchase of a home because of their student loan debt burden.
Importantly, of the people who reported that they held student loan debt, 53% said that the debt was “somewhat or very much” an obstacle to homeownership, a slight improvement from 57% in 2015, but still up from 49% in 2014. This infographic from the California Association of REALTORS lays out the facts.
So What’s the Solution?
The statistics may look daunting for prospective buyers, but there are so many opportunities to take advantage of, all it takes is a bit of education. By expanding homebuyer education, student loan debt management counseling, and down payment outreach initiatives, it is possible clear up market confusion and expand the use of tools that improve access and affordability. A great place to start your research is with CalHFA, the California Housing Finance Agency, to read more about available mortgage programs.
Sit down with a First Team Real Estate agent and find out how you can get creative and start on the path to homeownership. With down payment assistance programs, FHA loans, and more there’s something out there for just about everyone. All you have to do is start learning.
