A widely debated topic, the Biden-Harris Student Debt Relief Plan is still blocked by court orders at the current time. Whether you agree with the current administration’s plan to relieve student debt or not, the impact of student loan debt has been an ongoing topic within the real estate industry.
The National Association of REALTORS® (NAR) conducts a study entitled “The Impact of Student Loan Debt”, which explores the current role of student loan debt and the relationship to homeownership. The findings show that student debt does hold back home buyers.
The most recent report published in September of 2021, exploresthe role of the current Federal Government Stimulus packages and the role the current COVID-19 pandemic has played on debt. The majority of the sample report the COVID pandemic did not allow them to get closer to paying off their student loan debt. However, 38% did report the pandemic helped them financially get closer to paying off their debt. The largest shares report zero interest on federal debt allowed them to get ahead of monthly payments (16%) and cutting spending in other areas of life, such as entertainment and restaurants, allowed them get closer to paying off student loan debt (13%).
Furthermore, using data published in the 2020 NAR Profile of Home Buyers and Sellers, among home buyers who had a hard time saving for a down payment, student debt was the biggest factor delaying their saving, and delayed their saving by two years.
Some of the key findings from the Impact of Student Loan Debt study include:
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
