Want to Buy A House? Pay off Your Student Loans and Get Married
The real estate market, housing in particular has been a roller coaster. One thing in the real estate market that hasn’t been a roller coaster is the number of millennials buying homes. There has been a sharp decline in homeownership of all single people below the age of 40. Research verifies that back in the 20-year span between 1980 and 2000, that people owning homes in their 20′s had dropped from 43% to 38%. Those in their forties fared worse, dropping in home ownership from 61% to 55%. It got worse during the economic recession. According to the Federal Reserve, those numbers were halved.
Even with government help in paying them off, experts say that the student loan factor is a huge constraint to home ownership. And while there are more reasons than that, Bloomberg Business reports that there is currently a combined trillion dollars in outstanding student loan debt. This debt has hopeful buyers waiting to buy a home until they can get a better job and payoff their student loan.
Joblessness has also added to deteriorating home sales for this demographic. Employment figures are gradually improving. It is suspected that once unemployed percentages fall to a more manageable ratio and more jobs are added, specialists tell us that home buying for the under -forty gang will go up. But for now, having job security is essential for buying a home.
Until marital stats change, watch for singles to continue renting. The single individual must pay the costs of student loans, car payments, monthly bills, insurance and so on by themselves. Factor in a mortgage and the costs of the loan and upkeep, it’s no wonder they opt to rent instead. When people are married, more often than not, they have two incomes coming in, and that makes the costs of buying much more feasible than doing it on your own, but it’s interesting to see the connection between marital status and renting versus home ownership.
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