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Student debt contributes to lower home ownership: Fed

Published 01/16/2019, 12:10 PM
Updated 01/16/2019, 12:10 PM
© Reuters.  Student debt contributes to lower home ownership: Fed
  • Average real student debt load per capita for the age 24-to-32 demographic doubled to $10,000 in 2014 from $5,000 in 2005, according to the Federal Reserve's first issue of its Consumer & Community Context series.
  • That's affected their ability to take out mortgages to buy a home. The percentage of household heads in the 24-to-32 age group that own their own home fell to 36% in 2014 from 45% in 2005--a 9 percentage point drop.
  • "We estimate that roughly 20% of the decline in homeownership among young adults can be attributed to their increased student loan debts since 2005," according to the authors of the article, Alvaro Mezza, Daniel Ringo, Shane Sherlund and Kamilla Summer.
  • Tighter mortgage market conditions after the financial crisis may also have contributed, making it harder for people with student debt to get financing.
  • ETFs: XHB, ITB, PKB, NAIL, HOML
  • Now read: How To Find The Best Sector ETFs: Q4 2018


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