Study Shows Student Debt Delays Home Buying By Seven Years

Tyler Durden's picture

Authored by Mike Shedlock via,

The Student Loan Debt and Housing Report 2017 by the National Association of Realtors and the nonprofit group American Student Assistance shows the obvious: Student debt delays household formation, home buying, and saving.

The U.S. currently has a student debt load of $1.4 trillion, which accounts for 10 percent of all outstanding debt and 35 percent of non-housing debt. The magnitude of the debt continues to grow in size and share of the overall debt in the economy. While this amount of debt has risen, the homeownership rate has fallen, and fallen more steeply among younger generations.


Student loan debt impacts other life decisions including employment, the state the debt holder lives in, life choices such as continuing education, starting a family, and retirement.


Twenty-two percent were delayed by at least two years in moving out of a family member’s home after college due to their student loans.


Among non-homeowners, 83 percent cite student loan debt as the factor delaying them from buying a home. This is most frequently the case due to the fact that the borrowers cannot save for a downpayment because of their student debt. Among homeowners, 28 percent say student debt is impacting the ability to sell their existing home and move to a different home. The delay in buying a home among non-homeowners is seven years and three years for homeowners.

Awareness of Tuition Costs

  • Before attending college, 28 percent of borrowers knew generally the school “might be expensive” or “might be cheap”, but had no further information.
  • More than one-quarter of borrowers had an understanding of tuition, but had little understanding of other costs such as fees and housing expenses.
  • One in five borrowers understood all the costs including tuition, fees, and housing.


  • Thirty-two percent of student loan borrowers surveyed had defaulted or forbore on their student loan debt
  • Two-fifths of borrowers who had personal incomes of less than $25,000 in 2016 had defaulted or forbore on their student loan debt in the past.

Life Choices

  • Among life choices, more than half of respondents believe they are delayed in continuing their education or starting a family due to student loan debt.
  • Forty-one percent would like to get married, but are delayed from marriage due to their student loan debt.
  • Only 13 percent of respondents did not have a life event delayed due to debt.
  • 28 percent of respondents rent with roommates.
  • Fifteen percent live with friends or family and pay rent, and 15 percent live with friends and family and do not pay rent.
  • Twenty percent own their own home and 16 percent rent solo.
  • Thirty-five percent of younger millennials live with family (both paying and not paying rent) compared to just 24 percent of older millennials.

Student Debt Impacts

Mish Notes

  1. Younger millennials are those born 1990 to 1998. Older millennials are those born 1980 to 1989.
  2. The study did not ask how many regretted going to college.
  3. The study did not ask how many regretted paying what they did pay for college.

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I woke up's picture

I think 7 years is a low number, probably closer to 10

TheDude1224's picture

In Southern California the number is probably closer to 20. It's a complete joke how high the housing has gotten, and when there is a correction, the people relying on their miraculous growing equity will see a sharp decline in lifestyle.

Manthong's picture


That 7 year car loan on the Beamer will add a few years as well as the vacations to Europe and Australia.

Buck Johnson's picture

It is closer to twenty but they don't care as long as the game keeps going on.


gatorengineer's picture

Hahahahaha...... Assume a 40k job (many starbucks baristas dont make even that but play along)..... 50k over 10 years thats around $550 a month.... or a shade less than 20 percent of gross......  these basement dwellers wont get their in 20 years.

Stan Smith's picture

Here in the Midwest it maybe 7 years,  but on the coasts id guess it's closer to 10.    And those are the lucky ones.    Anyone who doesnt see the problems this will cause down the road -- or even now -- is wearing blinders.

Déjà view's picture

Seven Year Itch...

Kurpak's picture

All part of the (globalist) plan

Bank_sters's picture

Mortgage- to pay until death.  Yeah, and quit calling it home ownership.   Stop paying your property taxes and poof its gone.  Now how free do you feel?

Shitonya Serfs's picture

Stop paying your rent, and see how free you are.

Better yet, try to paint your apartment.

Want a dog? Ask the landlord, pal.

How's that steady rent payment, year after year? Oh wait, you mean it can increase on the whim of your landlord

Taxes are a squirt of piss.

Bank_sters's picture

Taxes mean your home is constantly being threatened.   And to pay off what?  Debt created by politicians from 'money' out of thin air.   

Homes aren't fungible.   Good luck selling into a downturn.  But make sure you pay your taxes!!!

Shitonya Serfs's picture

Being a tenant means your under the thumb of someone else. Guess you can move out after the lease is up, but moving all your crap is a pain and you still have to go through the whole looking/application process again.

Yes, I get the tax thing, but have really no one else to answer to. Maybe get permission to build a fence or an addition (both of which improve the home).

Don't care much about a downturn, if you're not using your house as a short term investment, and don't buy more than you can afford in the first place.

Stan Smith's picture

You dont think your rent is paying your landlords taxes?   And mortgage?   That's the lone difference.    It's symantics.    Without the deductions or equity potential.

XBroker1's picture

I never understood how renters got the ideat they're avoiding RE taxes by renting.  What are these people teaching them in 'college'...? lol


 My only cost outtisde of utilities is my 1200 annual tax bill. Part of that is subsidized bc I'm disabled. My house is worth about 330k.  Don't sleep on Tennessee. Lowest cost of living and  among the best places to retire in the U.S.

silverer's picture

But aren't the rich universities and professors returning all that tuition to the economy in a useful way? I guess not.

Shitonya Serfs's picture

Yep, the same way AMZN, Goolag, FB, Zuck, Bezos, etc. are contributing their winnings back to the economy in a useful way...more for them, nothing for you.

A. Boaty's picture

Law professors make about 160k. Most of 'em make less than 100k, not exactly rich.

Blankenstein's picture

The chart you linked had the lowest salaray at $86,000.  That is in the top 15% of incomes.  100k or more are in the top 9%.

ParkAveFlasher's picture

I went to barely accredited college because of $$$.  Came out with about $15k in debt.  Borrowed a down payment from family and bought a house 6-10 years ahead of my peers, and before the bubble. 

Lied on my mortgage application.  Did my own renovations. 

Got a (comparatively) low-paying, low-risk, low-requirement job to support the family and pay the bills.  Still have it, basically. And because I'm NOT Mr. Career, I actually take vacations and enjoy weekends with my children.

Reduced cost base is essential for living in NYC.  Thanks to God, I have equity, cash savings, PM, retirement account, etc.  It's that vanity of a high degree and corner office that ironically the poor people find themselves abandoned by.



Mena Arkansas's picture

As the long as the 7-figure university presidents and their bloated, over-paid administrators got theirs, what's the problem?


Herdee's picture

The secret to getting out of student debt is rolling it all over into mortgage interest debt. Making it easy for students to buy housing.

RumpleShitzkin's picture

Study shows mortgage debt delays retirement forever.

XBroker1's picture

Rents continue to rise and never go away. I never get it when people say things like buying is worse.

Blankenstein's picture

Because we are in housing buble 2.0 and real estate is significanty overpriced again.  House prices are at record highs, yet half the people in the us have no saving, our governments are broke and there are frequent stories of retail stores closing their doors.  How can housing prices be this high, when the economy is in worse shape than it was during housing bubble 1.0?  

House prices will go down again because these prices are unsustainable.  Buy at your own peril 



"The median house price jumped 6.5 percent from a year ago to an all-time high of $263,800 in June. It was the 64th straight month of year-on-year price increases."

greenskeeper carl's picture

That depends. If you still have a mortgage in your late 60s or 70s, then yes. Having a mortgage and buying a house by the time you are 30 means that, hopefully, you will be mortgage free by then. You just have to resist the temptation to buy an unnecessarily larger house as your income goes up. Yes, I know you still have to pay taxes, but living in a house and paying taxes and insurance only beats the hell out of renting, where much of your money goes to paying the landlords taxes and insurance.

Akzed's picture

The less useful a college education becomes, the more it costs. Odd.

RumpleShitzkin's picture

Yup. And it's not like uselessness is scarce, either.
Yet still commands a premium.

greenskeeper carl's picture

Yes and no. The main reason it's so expensive is the government lending limitless amounts of money to anyone who can fog a mirror. The reason it is so useless is because they have lowered the standards to the point they amount to an adult day care so they can allow more and more people in, and make more money because, again, the government will lend money to anyone with a pulse, no matter how ill equipped for college they are. If they don't keep lowering the academic standards, the increasingly stupid high school grads won't be able to remain in school and will drop out, depriving them of revenue.

Another issue of its usefulness is that most seem to want to focus on SJW nonsense rather than learning, but that's kinda separate.

Lt. Frank Drebin's picture

I walked out of college with 60k in cash from my co-ops. Scholarship so no debt either. Lived at home with my parents and paid them in labor for yard work and home repairs. Bought my house fresh out of undergrad.

Not bragging, just leaving an example that if you manage your finances right and study hard in a STEM field, you can be way, way, way ahead of the rest of the pack. 


JBilyj's picture

More like 10-15 years

djrichard's picture

I'm guessing that this is why the powers that be are so strong on immigration.  It's not because of the jobs unfufilled.  It's because the immigrants aren't carrying a debt load like the millennials are.  So instead of using the millennials as kindling for the bottom of the housing pyramid, we use immigrants.

Haitian Snackout's picture

Yea you are correct. But it doesn't quite work as well when after the teaser rate runs out and the heloc is taken out. Then all usable parts are loaded onto a trailer and hauled down to the new digs being constructed on Lake Chapala. No need to send the keys back as the doors are loaded up on the truck.

corporatewhore's picture

Here's your choice--do you want to make people house mortgage slaves or student loan slaves?  You can even create some equilibrium and make the choice a free market one by allowing student loans to be dischargable in bankruptcy.  (Thank her royal highness Hillary Clinton for allowing non dischargability).

You can choose to default on either or both. BFD

Blankenstein's picture

Not if the government is backing the debt.  There is no reason that the taxpayer should shoulder the losses for loaning dum-dums money to go to college.  

kizell's picture

I have a good job that pays 6 figures but have 6 figure student loan debt too.


Out of school i got married and built a nice house.

3 years later I got divorced and another 3 years later I sold the house at a loss. 

At 35, I've decided to never remarry, never have kids, and I will never again buy a home/mortgage. 

XBroker1's picture

Marriage is a scam as you found out. Owning a home eventually ends up w/ no monthly housing payments if done right. Too many comproises i the rental world for me, anyway.

Last of the Middle Class's picture

First piece of mail they get after amnesty will be a college loan app. Everyone knows that.

GunnerySgtHartman's picture

Go to a cheaper school, problem solved.  There is no absolutely no rational reason to incur a 6-figure amount of debt for most careers.  I refuse to feel sorry for these snowflakes who cry that they have to go to their "dream school" (whatever the hell THAT means) and then spend more than four years getting a degree which qualifies them to do absolutely nothing productive.  Find a field you can make money in, go to a cheaper school, and get done in four years.  And if you don't mind working with your hands, go to a trade school - trade schools are usually cheaper and ROI is realized more quickly.  It really isn't that hard!

I was out of school for over six years before I was able to buy a house - and then it was a fixer-upper, not this "gotta have my dream home right now" stuff on HGTV.  I still have that house, and I am a year from having it paid off and being debt-free.  Buy cheaper and build some equity.

Debugas's picture

here it is more like delaying home buying for life

rejected's picture

Really? Big surprise!

Of course these idiots going for a government piece of paper worth about as much as government fiat. I've seen too many College grads that couldn't open a box of Cracker Jacks become doctors, dentists, wall street rip offs, citizen killers and a plethora of other proffessions made useless. Pay the fee, you get the grade. Copies of tests available at the library... for a fee. Mechanical Engineers starting at $35 thousand,,, LOL... I made more than that working offshore back in 1980.

But hey,,, they got those idiot phones down pat.

Haitian Snackout's picture

The debt delays it for 7 years. The interest another 7.

aloha_snakbar's picture

Relax and save and pay cash; there will be screaming deals once boomers start retiring en masse...

CatsPaw's picture

Debt+home+Irma/Harvey/Maria=more debt.

ToSoft4Truth's picture

The crazy part is Detroit can't tear down the $500.00 houses fast enough.   People love to swim in debt.  Love it!!

Swamidon's picture

More whinning about student debt.  Nobody forced it on anybody.  Given the dire straights the Melinnials find themselves, and their lack of insight about their shortcomings, you'd think some of them (at least) would self-evaluate and then work to improve themselves.  They will have no future otherwise, and again, it's their own fault they're losers.

JibjeResearch's picture

Those fucking cool looking party animals deserve what's coming... :)

wholy1's picture

yo unemployed, undischargeable-debt-enslaved students, what's possibly one of the "Blessings from the Beginning" being revealed:  the "opportunity" to begin - like most everything else, it's a PROCESS -   a "System D" RESET.  SIMPLIFY the daily activity[s], seek/generate PRODUCTIVE activity inland, RURAL.   Hunker-down while aggregating COIN and developing associations with like-minded individuals.  When possible, then pay CASH for a portion of UNaddressed arable county dirt and build your digs together with your "collaborators".  Survive to THRIVE - GROUPed, GROUNDed, GUNned, GARDENed, PROVISIONed.  Ya may be surprised not only how satisfying is self-reliance, but also how many REAL prospective "mates" will appear.

Aubiekong's picture

Kid just graduated college, studied hard got good grades in high school, got scholarship to instate public college, worked a job while there, graduated debt free with engineering degree, got first  job and several other offers. Just bought first house.  If you dont want a student loan than plan better and work harder...

yellowsub's picture

The housing prices is at 85~% of peak prices of 2007 around my town in north NJ.

Even if they figure out some new looney lending schemes to allow them to buy, they'll be paying a lot more and most likely with little to no money down.  NJ is already subsidizing home sales with a 16k forgivable loan to pay closing costs in certain counties.  

Past mistakes are repeated by our leadership and they seem to have a short term memory...