Student loan debt may impact home sales among first-time buyers

Student loan debt may prevent many people from entering the real estate market.As students graduate?from college with tens of thousands of dollars in?debt, real estate experts are concerned that their obligations will prevent them from seeking?homeownership.According to a recent report released by the Federal Reserve Bank of New York, student loan debt is the only form of debt?among consumers that has consistently increased since 2008. Furthermore, those who owe money are often delinquent, as one-third of borrowers haven't made a payment in 90 days or more.Financial expert Brian Coester told CNBC that this will likely lead to fewer first-time homebuyers.”You're going to see somebody who would have been able to afford a more expensive house maybe go for the lower version or the downgraded version,” said Coester.He added that high debt levels could have an impact on the luxury property market as well, as these residences?tend to be purchased by those who have more discretionary income.Compared to the rest of the country, people interested in purchasing Houston real estate are in good financial shape. According to the Institute for College Access and Success, Texas is 40th on the list of states with the highest average student loan debt.
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