About this episode
In today’s HousingWire Daily episode, Realtor.com’s Senior Economist George Ratiu discusses how student loan debt is impacting the nation’s finically strained borrowers. For some background on the interview, here’s a brief summary of HousingWire’s coverage on the student debt crisis : What is holding back potential homeowners from buying? According to the National Association of Realtors 2020 Profile of Home Buyers and Sellers, 47% of potential homebuyers said student loan debt was the biggest obstacle in saving for a down payment. In addition, 43% cited high rent/mortgages and 36% cited credit card debt as factors getting in the way of saving for a down payment. This year, the number of first-time homebuyers dropped to 31% from 33% last year, the lowest share since 1987 when it was 30%. Over the course of this year, home prices have continued to tick upward due to low inventory and high demand . NAR said that the median down payment for all homebuyers this year was 12% — 7% for first-timers and 16% for repeat buyers. Out of first-timers, 26% said they used family for help for the down payment via gift or loan, which is down from last year when that number was 33%. Of those who purchased after March – when the pandemic was declared in the U.S. – 15% said they were more likely to purchase a multi-generational home compared to 11% who purchased before. These buyers were also more likely to purchase more expensive homes after March, at $339,400 compared to $270,000 before. HousingWire Daily examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham. HousingWire articles covered in this episode: Student loans hinder saving for a down payment, NAR finds With Biden win, the future of forbearance and student loans