Student loans present a lot of burden for many who carry the debt from their university days. Some economists have even warned that rising student-debt levels will hurt the housing market. But a new report by Zillow contradicts these warnings and shows that student debt isn’t holding back most young professionals from buying a home.
The report found that having more student debt had only a slightly negative effect on homeownership for people with their degrees. Statistically, a couple with no student loans and at least one bachelor’s degree have a 70% chance of owning a home in their early 30s. A couple with $30,000 in student debt and at least one bachelor’s degree have a 68% chance. Couples that owe $50,000 in student loans and have at least one master’s degree have a 75% chance of homeownership. Couples with $10,000 in loans and nothing beyond bachelor’s degrees have a 69% chance of owning a home. The probability of owning a home changes little based on how much the couple’s debt is, especially if it means they have more education.
Read the full story here.
The report found that having more student debt had only a slightly negative effect on homeownership for people with their degrees. Statistically, a couple with no student loans and at least one bachelor’s degree have a 70% chance of owning a home in their early 30s. A couple with $30,000 in student debt and at least one bachelor’s degree have a 68% chance. Couples that owe $50,000 in student loans and have at least one master’s degree have a 75% chance of homeownership. Couples with $10,000 in loans and nothing beyond bachelor’s degrees have a 69% chance of owning a home. The probability of owning a home changes little based on how much the couple’s debt is, especially if it means they have more education.
No comments:
Post a Comment