flexiblefullpage - default
Currently Reading

Resumed Student Loan Payments Shake Up the Housing Market

Advertisement
billboard - default
Demographics

Resumed Student Loan Payments Shake Up the Housing Market

With student loan payments resuming this month, already cost-burdened Millennial and Gen-Z homebuyers are taking a hard look at their finances


October 2, 2023
Small black graduation cap on top of hundreds of dollars of student loans
Image: zimmytws / stock.adobe.com

The American dream of homeownership is becoming increasingly elusive for Millennial and Gen-Z buyers as they grapple with student loan payments resuming in October. While some managed to secure ultra-low mortgage rates when buying homes during the pandemic, first-time Millennial homebuyers face a number of persistent challenges, including rising interest rates, escalating home prices, inventory shortages, and, resuming this month, student loan payments adding to an already heavy financial burden.

With the typical monthly student loan payment being around $200, some homebuyers may feel compelled to lower their housing budgets by 8% to accommodate this additional expense, according to Forbes

In contrast to their millennial counterparts, Generation Z may approach homeownership differently. Having witnessed the financial struggles of older generations, Gen Zers may be more cautious about taking on excessive student loan debt. Gen-Z may prioritize choosing affordable education options or pursuing high-demand careers that don't require a college degree, thus reducing their reliance on student loans. Americans under 30 currently owe less in student debt than Americans in their 30s. 

Read more

 

Advertisement
leaderboard2 - default

Related Stories

Market Data + Trends

Housing Values Continue to Rise, Housing Market Gained $2.4T in Value Over Last Year

The total value of U.S. homes sees biggest gain in almost a year, with affordable East Coast and Midwest metros seeing gains of more than 10%

Net Zero

40 Finalists Selected to Advance in DOE's 2024 Solar Decathlon

The U.S. Department of Energy's annual design challenge recognizes collegiate cutting-edge, zero energy building designs

Affordability

Insurance Costs Add Pressure to Housing Affordability in These 10 States

There's another hurdle to housing affordability in states experiencing increasing frequency and intensity of severe weather events caused by climate change

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Sure there are challenges, but overall, Pro Builder's annual Housing Forecast Survey finds home builders are optimistic about the coming year

Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.