Posted On: October 25, 2019
Realtor.com released a report stating that the total amount of student debt could buy every house in the United States 1.9 times. The cost of a college education is going up, leading students to take out more loans for their education. Experts believe this causes millennial homebuyers to delay buying a home. The average student borrower owes around $34,500, which is much higher than the average down payment of $26,000.
Let’s look at the state of Florida alone. Our state’s student debt is almost $76 million spread across a total of 2,197,000 borrowers.
The Senior Economist, George Ratiu, had this to say about student debt: “Student debt has ballooned to an all-time high as the price of education continues to outpace wage growth, and this is holding back many potential buyers from being able to purchase a home.” However, Ratiu also believes that this crisis will continue affecting students for years to come as the price of a college education doesn’t seem to be going down.
This crisis hits millennials harder than any other group of student borrowers. In fact, at 15.1 million, they make up the largest category of borrowers.
Ratiu has insight on what these millennials could do to own their first home. “On the real estate front, the affordability crisis in major cities is driving young families to more affordable Midwestern and Southern markets, where savings for a down payment stretch much further and can turn owning a home from a future dream into today’s reality.”
However, something that isn’t as scary as student loans is having SETCO help you with your closing needs. Here at SETCO, we pride ourselves on being the number one Title Company in the Florida Panhandle, and we will also work with all parties closely to make sure your needs are met.