Does Student Loan Debt Help Explain Low Homeownership Rates for Young Adults?


A new publication from the Federal Reserve takes a look at student loan debt and its correlation with low homeownership rates among young adults.  According to the report, while overall U.S. homeownership fell approximately 4 percentage points in the wake of the financial crisis, the decline in homeownership was even more pronounced among young adults. The point out that 45% of household heads ages 24 to 32 in 2005 owned their own home, while just 36% did in 2014—a 9 percentage point drop.

“While many factors have influenced the downward slide in the rate of homeownership, some believe that the historic levels of student loan debt have been particular impediments…outstanding student loan balances have more than doubled in real terms…In surveys, young adults commonly report that their student loan debts are preventing them from buying a home.”

Click here to read the full report at


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Director of Education & Outreach, National Real Estate Investors Association

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