College Debt is Postponing Homeownership

This is not new news, and I already wrote about this earlier on this blog, but it is worth noting it again: college debt is a factor in postponing homeownership and a lot of other life decisions.

I just read this article from RISMedia, written by Suzanne De Vita (online news editor) which reiterates with fresh figures this pressing problem facing our youngest generation.  The National Association of Realtors is actively supporting efforts to find solutions and educate students as they take on new debt.  See the following NAR report on student debt.  As a result a majority of millenials are postponing several significant aspects of their life, such as marriage, starting a family, or starting any retirement savings.

Do you think getting a loan for your education should be more expensive than getting a loan for a car or a house?

Thank you for reading,
Francis

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A worthy local non-profit to remember: Community Services Agency in Mountain View

California: Millennials - Baby Boomers

The definition of a Millennial is not straightforward as evidenced by the many resources found online. However, if we follow the general guidelines of the Pew Research Center we can agree that these would be the people between the age of 19 and 35 as of 2016  (i.e. born between 1981 and 1997).
For the 3rd straight year nationwide, millennial homebuyers made up the largest part of all homebuyers: 35%, edging out Gen X (26%), boomers (31%) and the silent generation (9%).

Lots has been said and written about the level of indebtedness found associated with this slice of the American population (see for instance the article by Maya Pope-Chappell that I show on my previous post on my FB page:  "buried-in-debt millennials...").  Because they are the largest part of all homebuyers, we can only assume that more people nationwide would be engaged into the process of owning a home if the Millennials were not so saddled with student loans.  This could have in turn very positive repercussions on the US economy as a whole.

In California, these are some of the stats for Millennials and Baby Boomers (born between 1946 and 1964):

Click on the picture to see it larger.

Thank you for reading,
Francis

Silicon Valley Real Estate
Smart local Stats and Graphs 
non-profit organization worth noting: Partners for New Generations.

Most parents make home buying decision around kids:

A recent survey by Coldwell Banker Real Estate found that 79% of Millennial parents (between 18 and 34) and 70% of Gen X parents (between 35 and 49) make major purchasing decisions around

their children, stating that they are more concerned about the immediate impact of a move on the emotional well-being of their children than whether moving is a good decision.

Francis

Silicon Valley real estate specialist
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