RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Housing Holdbacks: Student Debt, Mortgage Market Confusion, and a Declining Marriage Rate

Home News
October 5, 2015
Reading Time: 3 mins read

Despite a growing economy, a new survey has found that the financial pressures of student debt, persistent confusion about the mortgage process and a continuing nationwide marriage rate decline are important factors combining to slow the housing market.

The third annual America at Home survey from NeighborWorks America, found that student loan debt continues to grow as an obstacle in a consumers’ ability to buy a home, as 57 percent of 2015 respondents who acknowledge having student loans says this debt was either “very much” or “somewhat” of an obstacle, compared to 49 percent of 2014 respondents.

Additionally, although mortgage rates remain historically low, a generally steady rise in home prices is outpacing income growth, leading homebuyers – especially first-time buyers – to search for ways to build up a down payment. However, nearly 40 percent of respondents have received “nothing at all” in terms of information about down payment assistance programs for middle-income homebuyers, programs that could provide thousands of dollars to help bridge a savings gap.

Finally, the housing market is being pressured by changing demographics. Of the respondents surveyed, 43 percent planned to purchase a home when they “got married or moved in with a life partner.” This is important for the housing market’s rebound, because the median age at first marriage has increased to 29.3 for men and 27.0 for women, according to the Census Bureau, up from 26.8 and 25.1 years, respectively in 2000.

“It’s clear the housing market is directly affected by many factors, and these forces identified in our survey are putting strong downward pressure on growth,” says Paul Weech, president and CEO of NeighborWorks America. “While NeighborWorks can’t address the demographic shift, we are increasing our efforts to support nonprofits that offer homebuyer education and financial capability coaching.”

Additional findings from the survey suggest other areas where increased homebuyer education could energize the housing market:

  • Consumers have trouble estimating the accurate costs associated with homeownership and general home maintenance. Respondents estimated an average cost of $15,070 for home maintenance repairs; however, the actual cost for home repairs and upkeep nationwide is more likely between $2,000 and $6,000. While current homeowners estimated cost for repairs to be $12,360, current renters estimated $20,503, suggesting that those consumers in the market for a new home might be deterred by perceived high maintenance costs.
  • Respondents lack adequate information on the consequences of foreclosure. While 32 percent of respondents believe they would have to wait “more than 5 years” after a foreclosure before they were eligible to obtain a new mortgage to purchase another home, the reality is consumers who have experienced a foreclosure need only wait two years before becoming eligible for most mortgage products.

“These findings reveal that Americans are not receiving adequate information about the home buying process,” says Weech. “With 42 percent of consumers using friends and family as primary sources of information about purchasing a home, it is incumbent upon organizations like NeighborWorks to ensure consumers take advantage of the many housing resources available. It’s understandable that Americans looking to purchase their first home are intimidated by obstacles such as student debt, lack of a down payment and weak credit,  so it’s critical that first-time homebuyers have access to information and programs such as down payment assistance and affordable loans so they feel confident in purchasing a home independently.”

neighborworks_infographic

For more information, visit neighborworks.org.

ShareTweetShare
Susanne Dwyer

Susanne Dwyer

Related Posts

Luxury Home Prices Fall as Starter Homes See Increases
Agents

Luxury Home Prices Fall as Starter Homes See Increases

January 30, 2023
CRMLS Partners With Styldod for Advanced Image Analysis
Agents

CRMLS Partners With Styldod for Advanced Image Analysis

January 30, 2023
United Real Estate Attributes Growth to Its Bullseye Agent-Productivity Platform
Agents

United Real Estate Attributes Growth to Its Bullseye Agent-Productivity Platform

January 30, 2023
ERA Real Estate Expands Presence in Central San Joaquin Valley
Agents

ERA Real Estate Expands Presence in Central San Joaquin Valley

January 30, 2023
JPAR®–Real Estate Named a 2023 Top Franchise by Franchise Business Review
Agents

JPAR®–Real Estate Named a 2023 Top Franchise by Franchise Business Review

January 30, 2023
How to Debunk 4 FSBO Myths
Agents

How to Debunk 4 FSBO Myths

January 29, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

The Great Housing Market Correction of 2023

For much of the past two-and-a-half years, it has been a housing market free-for-all, with bidding wars, multiple offers over... Read more.

Business Tip of the Day provided by

Recent Posts

  • Luxury Home Prices Fall as Starter Homes See Increases
  • CRMLS Partners With Styldod for Advanced Image Analysis
  • United Real Estate Attributes Growth to Its Bullseye Agent-Productivity Platform

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2023 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2023 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X