Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Millennial Student Loan Debt Tanks Housing Market

  by    0   0

There are currently about 54 million millennials entering the workforce in the US, and for many of them, the idea of buying a home isn’t an immediate goal. That’s because the majority (70%) are under an enormous amount of student debt. Large school loans are motivating many millennials to put off their first home purchase until they pay down some or all of their education expenses. The delay is having an immediate impact on the housing markets.

couple looking over their finances


Currently, student loan debt has reached $1.3 trillion, which is about $3,800 for every person in the US, according to an article in the Boston Globe. Education loans are now the next largest source of consumer debt, second only to mortgages.

The shifting debt burden isn’t helping an already hurting housing marketing, which has seen home ownership rates slip to a 50-year low. A recent study by American Student Assistance and the National Association of Realtors found 71% of students cited student loan burden as the main factor for delaying a home purchase.

The lack of demand from debt-burdened Millennials is causing a ripple effect throughout the entire real estate market, said Jonathan Spader, senior research associate at Harvard’s Joint Center for Housing Studies. “To the extent that there’s weak demand at the first-time home-buyer level, it prevents existing homeowners from trading up,” Spader said. “That demand is central to the health of the broader real estate market.”

What makes the situation worse is the number of loan defaults on students, which amounts to over 11% of student loans currently. “The impact of those defaults on their credit reports could be a barrier to homeownership in the future,” Spader said.

The major contributor of the overall problem is the high cost of education. College is too expensive, and the fault lies squarely with the federal loan programs, which keep the costs higher than they would be otherwise.

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

The Outlook for Gold in 2020 Remains Bullish

Gold had a strong year in 2019 and a World Gold Council report says the outlook for 2020 remains bullish. We expect that many of the global dynamics seeded over the past few years will remain generally supportive for gold in 2020.” Gold charted its best year since 2010 last year. The price increased by […]

READ MORE →

Spending Us Into Oblivion: Federal Budget Deficit Tops $1 Trillion in 2019 Calendar Year

The US federal government ran a budget deficit of over $1 trillion in the 2019 calendar year. It was the first budget deficit over $1 trillion in any calendar year since 2012 — in the midst of the Great Recession. The budget shortfall from January through December totaled $1.02 trillion, according to the latest report issued […]

READ MORE →

Holdings in Gold-Backed ETFs Grew 14% in 2019, Hit All-Time Highs

Net inflows of gold into gold-backed ETFs came in at 400.3 tons in 2019, according to data released by the World Gold Council. ETF gold holdings grew by 14% last year and finished at 2881.2 tons. Overall, global gold-backed assets under management grew by 37% in US dollars due to positive demand and an 18% […]

READ MORE →

Central Banks Continue “Remarkable” Gold-Buying Spree

Central banks continued their remarkable gold-buying spree in November and remain on pace to eclipse 2018’s near-record purchases. According to the latest numbers from the World Gold Council, central banks added 27.9 tons on a net-basis to official gold reserves in November. That brings the yearly total for 2018 with one month left to calculate […]

READ MORE →

A Shocking Numbers of Americans Live Paycheck to Paycheck

We’re told that this is the greatest economy in history. Stock markets are surging. Unemployment is low. And yet despite the good times, a shocking number of Americans live paycheck to paycheck. Several surveys cited by MarketWatch reveal the precarious financial situation many Americans find themselves in. This is less than ideal in an economy […]

READ MORE →

Comments are closed.

Call Now