Dive Brief:
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Student loan debt will prevent 414,000 would-be homeowners from buying houses this year.
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A new report from Irvine, CA-based John Burns Consulting, which advises home builders, reports $83 million worth of sales a year—8% of all home sales—never happen because 5.9 million consumers younger than 40 are paying $250-plus every month toward student loans. That’s triple the number who had payments that high in 2005, the study says.
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A monthly $250 loan payment, the report estimates, zaps the debtor’s home borrowing purchasing power by $44,000.
Dive Insight:
Young adults with student debt are less likely to own homes than their peers who never went to college, the Federal Reserve Bank of New York has reported. The tally for outstanding student loans: more than $1 trillion.