Student debt hampers home buyers; it's ridiculous to think otherwise. All debt impacts a home buyer; the insane cost of health insurance, rent, car payments, other personal debt and of course taxes.
Yet many government economists, major housing industry outlets, lenders and others involved in housing mitigate the impact of this debt. In 2015, the average college graduate carried just over 30K in student loan debt. Perhaps not a killer when isolated, but consider those pesky other expenses noted above. Then consider the 19+- TRILLION outstanding national debt and that it translates to a debt of 161K for each tax payer. Fair share? Well consider that 45.3% or 77.5 MILLION households pay no taxes. Fair share?
The result of all of this has been a lethargic first time and first move up buyer pool; many simply cannot find firm economic ground and lack either the desire or means to buy a home. Lenders are loosening up again with the fed's blessing, the zero down and modified credit assessment camps are finding a voice. How that plays out remains to be seen but history has a bad habit of repeating itself.
If the housing market is to truly recover, the economy has to be fundamentally sound. The situation around college tuition is very similar to a bubble - and it likely is. This money is being invested and it appears the main winners are the colleges...
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