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Is this the Direction of Housing for 20 & 30 Year Olds?

By
Real Estate Agent with Dave Edwards Realty

From Inman News:

"Student loan debt now totals $865 billion, which is greater than all credit card debt outstanding, as well as all other types of household debt except for mortgages.

College graduates have debt averaging $25,000. Even more troubling is the rise in debts associated with for-profit college and trade schools, whose revenues come primarily from debt available through federal government programs.

The debt load is so high, and the job outlook so bleak, that student loan default rates have almost doubled. With the economy little improved since 2009 (two-year lag on data), default rates are bound to rise further.

Student loans are going to be yet another hurdle for the housing market to overcome. Faced with mounting student loan debt, poor job prospects and stagnant wages, an increasing amount of 25- to 34-year-olds (a prized demographic for the housing sector) have moved back in with their parents. Almost 6 million 25- to 34-year-olds now live with mom and dad, up 26 percent from when the recession started in 2007.

Today's 36.8 percent homeownership rate for 25- to 29-year-olds is at its lowest level since 1999, and homeownership for 30- to 34-year-olds is at its lowest rate in 17 years.

The good news is that this pent-up demand will ultimately provide a much needed boost to the housing sector. The bad news is that the boost will be heavily skewed to the rental market, as it will take longer than ever for young people to qualify for a mortgage, especially if more and more graduates are hit with credit blemishes from unpaid student debt..."

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When it's time to buy or sell real estate in Greenville, SC you need to work with a realtor who is honest, trustworthy, and knows the market. Dave Edwards - Greenville, SC Realtor - makes a strong effort to keep up with Greenville, SC market trends by analyzing market information on a daily basis. Who do you know that needs to sell? Contact us today at 864.275.7250.
Based on sales by GGAR members and CRS data.

Comments (1)

Wayne Goss
Keller Williams - Punta Gorda, FL
THE MYSTERY MAN

Without a doubt student loans are another disaster which is akin to bad loans made in the housing industry. Loans should be made according to ability to pay them back.  Costs for a college education now are out of control. Our fore fathers created public schools and education up through high school, because only the rich could afford to educate their children. We have reached this point with a college education. Soon because of debt , only the rich will be able to afford higher education. The only way to put a lid on this, is to do what our fore fathers did with education up to high school levels...and that is to provide public schooling. If public schooling were to be made available for college, it would put an end to this greed driven industry that is spiraling out of control...Wayne

Dec 15, 2011 03:47 AM