RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
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
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
RISMedia
No Result
View All Result

Student Loan Debt Impact on Home-Buying Analyzed at REALTOR® Policy Forum

Home Latest News
By RISMedia Staff
October 18, 2021
Reading Time: 4 mins read
Student Loan Debt Impact on Home-Buying Analyzed at REALTOR® Policy Forum

Top experts from the housing and higher-education fields joined policy thought leaders from the National Association of REALTORS® (NAR) on Wed., Oct. 13 to discuss the current student loan debt crisis and how it affects the economy, housing market and debt holders. The event explored the findings of NAR’s September report, The Impact of Student Loan Debt. For the past eight years, NAR has been collecting and examining research to measure the impact of student loan debt on future homebuyers. The report uncovered that student loan debt is one of the most significant hurdles for potential buyers and their ability to purchase a home.

“Today’s millennials are drowning in student loan debt. After our research, we can now say with certainty that student loan debt is making it difficult to buy a home,” said NAR Vice President of Policy Advocacy Bryan Greene to open the event. “We know that homeownership is the ticket to wealth and equity. Many are concerned that to address student loan debt, we would have to take the load off students and put it on taxpayers. Others advocate help from private employers. We need to talk about all options and explore what reforms are possible.”

Fifty one percent of student loan holders say their debt delayed them from purchasing a home. NAR’s Vice President of Demographics and Behavioral Insights, Jessica Lautz, took the time to explore and explain the research the association has recently done.

“We first started researching this topic because of NAR member’s children—they couldn’t afford a home because of the burden of student loan debt. We knew they weren’t alone because there are 40 million Americans holding student loan debt,” said Lautz. “Half of non-owners say student loan debt is delaying them from buying a home. We asked participants in our research to pretend they paid off their student loan debt— they said the first thing they would invest in is long-term savings and the second would be buying a home. So, we know they want to get into homeownership, but they are having a hard time getting there.”

The Mortgage Bankers Association (MBA) spoke about today’s competitive housing market. Detailing that in the current market candidates are faced with other buyers offering all-cash offers and a competitive bidding process. In result of intense competition, MBA supports assistance in down payment which is clearly needed for first time homebuyers specially in low-income areas. Senior Vice President of Public Policy for the National Fair Housing Alliance, Nikitra Bailey, went on to outline how student loan debt has a disproportionate effect on people of color. NAR’s research shows white student debt holders (30%) are less likely than Black (47%) or Hispanic (47%) debt holders to say they are currently incurring student loan debt for themselves.

“Today Black homeownership is as low as it was when discrimination was legal,” said Bailey. “After 20 years of taking out student loans, Blacks still owe 95% of the balance of the debt and are more likely to default. Post-secondary education is now a necessity to succeed, yet a degree is not a shield from racial disparity. Our proposed Down Payment Targeted Assistance Program addresses student loan debt as a burden that leads to the lack of ability to save for a down payment, mostly among Blacks and Latinos. And our Keys Unlock Dreams Initiative will help close the racial wealth and homeownership gap.”

Rachel Fishman, deputy director for Research, Higher Education at New America, was able to explain to the audience the burden on parents who take out Parent PLUS loans. These federal loans continue to be an in-between space where parents take on the student loan debt of their child.

“When we talk about student loan debt, we talk about the student, but we need to start correlating the family,” said Fishman. “My hope is to raise awareness about this issue… to start addressing the root cause of debt—food insecurity, housing affordability, childcare. Families are juggling these things on balance sheets along with student loan debt. Among other recommendations, we seriously need to address college affordability for a four-year degree.”

The last speaker for the event was Ben Kaufman, head of Investigations & Senior Policy Advisor at the Student Borrower Protection Center. He closed the forum with statistical intel that outlined the chronological timeline showing the increasing financial instability that student loan debt is creating in this country and how it is standing in the way of people being able to purchase a home.

“Student loan debt has exploded in the U.S. There are more people borrowing, and they are borrowing more. People think of a student loan debt holder as a young person, but actually two-thirds of borrowers are over the age of 30,” said Kaufman. “Even before COVID, the rate of delinquency on student loans was higher than the delinquency on mortgages at the peak of the financial crisis. Before COVID, a borrower was defaulting on a student loan every 26 seconds.”

“So much of this is policy choices, for generations every single day in Washington all levels of government have been making decisions on this, added Kaufman. “It is imperative to claim your seat at the table so your voices can be heard. If your voices were heard from the onset, I don’t think we would see the consequences we see today.”
For more information, please visit www.nar.realtor.

Tags: Industry EventNARNational Association of REALTORS®Real Estatereal estate newsStudent Debt
ShareTweetShare

RISMedia Staff

Related Posts

Giving Back a Priority for Thriving Fort Lauderdale Team
Agents

Giving Back a Priority for Thriving Fort Lauderdale Team

May 17, 2022
Four Ways Real Estate Team Leaders Can Overcome Leadership Loneliness
Agents

Four Ways Real Estate Team Leaders Can Overcome Leadership Loneliness

May 17, 2022
It Takes a Village
Agents

It Takes a Village

May 17, 2022
Choosing to Be Intentional
Agents

Choosing to Be Intentional

May 17, 2022
Analysis Shows Multifamily Price Appreciation Outpaced Rent Growth
Agents

Analysis Shows Multifamily Price Appreciation Outpaced Rent Growth

May 17, 2022
Homegenius Partners With Berkshire Hathaway HomeServices
Agents

Homegenius Partners With Berkshire Hathaway HomeServices

May 17, 2022

Leave a Reply Cancel reply

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

Tip of the Day

How Agents Turn Low Home Inventory Into a Marketing Advantage

By targeting the right prospects, creative messaging, and using proven marketing tactics, you can break through the crowded marketplace and... See How

Business Tip of the Day provided by

Recent Posts

  • Giving Back a Priority for Thriving Fort Lauderdale Team
  • Four Ways Real Estate Team Leaders Can Overcome Leadership Loneliness
  • It Takes a Village

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 Kitt Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • 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

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.