Share of First-Time Home Buyers Falls to 1987 Levels, Thanks in Part to Student Debt

The National Association of Realtors® (NAR) today announced the results of its latest home buyers survey, which shows the share of first-time home buyers falling to its lowest point in nearly three decades. Lawrence Yun, chief economist for the NAR, says:

Rising rents and repaying student loan debt makes saving for a downpayment more difficult, especially for young adults who’ve experienced limited job prospects and flat wage growth since entering the workforce.

Education Debt Increases Unabated

The mean and median levels of education debt burdening young families (those with heads of household younger than 40) have risen precipitously this century. Nearly 4 in 10 young families in America are saddled with education debt, up from a little more than 2 in 10 in 2001.

The ever-increasing debt burdens are hitting lower-income families the hardest. Nearly a quarter of young families’ student debt is held by those making less than $30,000.