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Yes, student debt is delaying homeownership

Yes, student debt is delaying homeownership

Finance
How to talk to your kid about paying for collegeCollege grads have claimed for years that they were putting off buying a home because of student debt. Now, there's strong proof that their loans really have pulled down homeownership rates. About 32% of those in their 20s owned a home in 2007, but that's fallen drastically to 21% in 2016. While the poor labor market and memories of the housing bubble certainly played a role, student debt can explain up to 35% of the decline, according to a report from the Federal Reserve Bank of New York released Thursday. If it sounds small, think of it this way: about half of Americans don't go to college and some of those who do aren't dragged down by student debt. The results suggest that the rise in college costs will result in "weaker spending and w...