Education comes at a price – a high one. According to a recent study published in the Demography journal, there seems to be a correlation between the high price of college education and foreclosures.
Research shows that from the years 2005 to 2011 a 1% increase in college attendance among 19 year-olds corresponded with 19,000 additional foreclosures the following year.
The report also points out how the incredible amount of student debt being accrued pre and post-university is delaying homeownership among millennials.
While this does seem bleak – it’s important to look at one key word here: delaying.
Although there seems to be a pretty high connection with student debt and the housing market, these young Americans are still very interested in purchasing a home – it’s just taking them a little longer to get there. Zillow released a recent statistic that showed 67% of 18 to 34 year-olds agreed that owning a home is necessary to live the American dream.
Yes, college debt is devastating in more ways than one, but those who want to buy a house, will….eventually.