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Student Loan Debt and Housing Report 2016
When Debt Holds You Back
National Association of REALTORS® Research Department And SALT®
Introduction
The U.S. currently has a student debt load of $1.3 trillion, which accounts for 10
percent of all outstanding debt. The magnitude of the debt continues to grow in
size and share of the overall debt in the economy. While this amount of debt
has risen, the homeownership rate has fallen, and fallen more steeply among
younger generations. From the National Association of REALTORS® Profile of
Home Buyers and Sellers, among recent home buyers, one-quarter have student
loan debt and the typical amount is $25,000. The share of those with student
loan debt rises to 41 percent among first-time home buyers. Even among
successful home buyers this amount of debt is cited as a difficulty in their home
buying process. To evaluate those trends SALT® and the National Association of
REALTORS® teamed up to conduct a survey of student loan borrowers who
are current in repayment.
The results of the survey demonstrate the impact that student loans, even
amongst those who are managing to pay their bills on a timely schedule, have on
their housing situation. Among survey respondents, 67 percent received their
loans from a four-year college, 31 percent from a two-year college, 27 percent
from graduate/post-graduate school, and 11 percent from a technical college.
Twenty-two percent were delayed by at least two years in moving out of a
family member’s home after college due to their student loans. While 18
percent are currently homeowners, 17 percent live with friends or family and
do not currently pay rent.
Among non-homeowners, 71 percent cite student loan debt as the factor
delaying them from buying a home. This is most frequently the case due to the
fact that the borrowers cannot save for a downpayment because of their
student debt. Among homeowners, 31 percent say student debt is impacting
the ability to sell their existing home and move to a different home. The delay
in buying a home among non-homeowners and homeowners is five years.
2016 Student Loan Debt and Housing Report
The Survey Respondent Demographics
Where debt is from:
◦ Four-year college: 67%
◦ Two-year college: 31%
◦ Graduate/post-graduate: 27%
◦ Technical school: 11%
Length since enrollment:
◦ Currently enrolled: 28%
◦ Less than a year: 19%
◦ 1-3 years: 43%
◦ 4-6 years: 8%
◦ More than 6 years: 3%
Type of higher education institution:
◦ Public: 66%
◦ Private: 46%
◦ For-profit: 6%
Who has debt within household:
◦ Survey respondent: 95%
◦ Spouse/partner: 20%
◦ Roommate: 8%
◦ Sibling: 6%
◦ Child/dependent: 4%
Employment status:
◦ Employed: 71%
◦ Employed part-time, seeking full-time:
14%
◦ Seeking employment: 10%
◦ Not seeking employment: 6%
%
2%
4%
6%
8%
10%
12%
14%
16%
3%
7%
13%
16%
14%
10%
15%
9%
14%
Student Loan Debt Amount
2016 Student Loan Debt and Housing Report
Student Loan Debt Delayed Decision to Move Out of Family Member's Home After College
While 58 percent of student loan borrowers did not delay moving out of a
family member’s home after college, 42 percent did delay their move.
Twenty-four percent delayed moving out of a family member’s home after
college for at least two years.
Younger Millennials (born 1990 to 1998) and those with 2015 personal
incomes under $25,000 were the most likely to delay moving out of a
family home.
Those who graduated six to 10 years ago had the longest delay—33
percent were delayed more than two years from moving out of a family
member’s home. In comparison, for those who graduated less than a year
ago, only 17 percent were delayed more than two years.
2016 Student Loan Debt and Housing Report
%
10%
20%
30%
40%
50%
60%
Did not
delay
moving into
own place
Less than 6
months
7 months-1
year
More than
1 year, but
less than 2
years
2-5 years More than
5 years
58%
4% 7% 9%
15%
7%
Delay Moving Out of Family Member’s Home After
College
Student Loan Debt Delayed Decision to Move Out of Family Member's Home After College
2016 Student Loan Debt and Housing Report
Generation:
Younger
Millennials (born 1990-1998)
Older
Millennials (born 1980-1989)
Gen X
(born 1965-1979)
Younger
Boomers (born 1955-1964)
Older
Boomers (born 1946-1954)
Did not delay moving
into own place 41% 60% 79% 80% 77%
Less than 6 months 6 2 1 2 2
7 months-1 year 12 7 3 3 5
More than 1 year,
but less than 2 years 15 7 4 2 5
2-5 years 21 15 7 7 2
More than 5 years 6 9 6 6 9
Student Loan
Debt Amount: $1 to
$5,000
$5,001 to
$10,000
$10,001 to
$20,000
$20,001 to
$30,000
$30,001 to
$40,000
$40,001 to
$50,000
$50,001 to
$70,000
$70,001 to
$100,000
More than
$100,000
Did not delay moving into
own place 56% 59% 61% 57% 58% 63% 56% 56% 58%
Less than 6 months 2 3 3 5 3 3 2 3 5
7 months-1 year 12 9 6 7 6 5 11 6 7
More than 1 year, but less
than 2 years 9 10 9 11 11 6 9 8 9
2-5 years 13 15 13 15 17 15 13 20 16
More than 5 years 8 5 8 5 6 8 9 7 6
2015 Personal Income: Less than $25,000
$25,000 to $49,999
$50,000 to $74,999
More than $75,000
Did not delay moving into own place 54% 59% 68% 75%
Less than 6 months 4 3 4 1
7 months-1 year 8 7 8 4
More than 1 year, but less than 2 years 9 10 9 5
2-5 years 16 15 10 12
More than 5 years 9 6 2 3
Current Living Arrangement
Most commonly, 21 percent of respondents rent with roommates.
Nineteen percent live with friends or family and pay rent, while 17 percent
live with friends and family and do not pay rent.
Eighteen percent own their own home and 17 percent rent solo.
Owning a home is least common among Younger Millennials, at five percent,
and most common among Gen Xers and Baby Boomers, at one-third.
Forty-six percent of Younger Millennials live with family (both paying and
not paying rent) compared to just 25 percent of Gen Xers.
Living with family is also most common among those with lower student
loan debt levels.
2016 Student Loan Debt and Housing Report
%
5%
10%
15%
20%
25%
Own a home Rent solo Rent with
roommates
Live with
friends/
family
without
paying rent
Live with
friends/
family and
pay rent
Other
18% 17%
21%
17% 19%
8%
Current Living Arrangement
Current Living Arrangement
2016 Student Loan Debt and Housing Report
Generation:
Younger
Millennials (born 1990-1998)
Older
Millennials (born 1980-1989)
Gen X
(born 1965-1979)
Younger
Boomers (born 1955-1964)
Older
Boomers (born 1946-1954)
Own a home 5% 17% 34% 32% 34%
Rent solo 10 21 23 19 32
Rent with roommates 33 23 8 8 0
Live with friends/ family without paying rent 28 11 7 10 11
Live with friends/ family and pay rent 18 20 18 22 14
Other 6 7 11 10 9
Student Loan
Debt Amount: $1 to
$5,000
$5,001 to
$10,000
$10,001 to
$20,000
$20,001 to
$30,000
$30,001 to
$40,000
$40,001 to
$50,000
$50,001 to
$70,000
$70,001 to
$100,000
More than
$100,000
Own a home 15% 16% 19% 17% 19% 20% 19% 18% 18%
Rent solo 18 20 16 17 15 20 18 14 19
Rent with roommates 18 17 17 19 22 22 22 28 26
Live with friends/ family without paying rent 19 18 16 18 18 14 17 20 15
Live with friends/ family and pay rent 25 21 24 21 18 16 18 14 16
Other 6 8 8 8 8 9 6 6 7
2015 Personal Income: Less than $25,000
$25,000 to $49,999
$50,000 to $74,999
More than $75,000
Own a home 10% 21% 35% 36%
Rent solo 16 19 19 15
Rent with roommates 22 23 22 14
Live with friends/ family without paying rent 22 14 6 11
Live with friends/ family and pay rent 23 16 12 13
Other 8 6 6 12
Among NON-Homeowners: Student Loan Debt Delaying From Buying a Home
Among non-homeowners, 71 percent believe their student loan debt has
delayed them from buying a home.
Among Older Millennials, 79 percent believe their student loan debt is
delaying them from buying a home.
Debt delaying potential home buyers is highest among those with more
than $50,000 in student loan debt—about eight in ten believe it is delaying
their ability to purchase a home.
2016 Student Loan Debt and Housing Report
%
10%
20%
30%
40%
50%
60%
70%
80%
Yes, impacted No, student
loan debt had
no impact on
ability to
purchase
No, ability to
purchase a
home is a result
of attending
higher
education and
improved long-
term economic
stability
Don't know Don't want to
own
71%
5% 2%
13% 10%
Non-Homeowners: Delay from Buying a Home
Among NON-Homeowners: Student Loan Debt Delaying From Buying a Home
2016 Student Loan Debt and Housing Report
Generation:
Younger
Millennials (born 1990-1998)
Older
Millennials (born 1980-1989)
Gen X
(born 1965-1979)
Younger
Boomers (born 1955-1964)
Older
Boomers (born 1946-1954)
Yes, impacted 67% 79% 71% 64% 66%
No, student loan debt had no impact on ability to purchase 4 3 5 9 10
No, ability to purchase is a result of attending higher education and improved long-term economic stability 2 2 2 2 3
Don't know 13 9 17 12 7
Don't want to own 14 6 5 13 14
Student Loan Debt
Amount: $1 to
$5,000
$5,001 to
$10,000
$10,001 to
$20,000
$20,001 to
$30,000
$30,001 to
$40,000
$40,001 to
$50,000
$50,001 to
$70,000
$70,001 to
$100,000
More than
$100,000
Yes, impacted 56% 55% 60% 67% 70% 75% 78% 85% 80%
No, student loan debt had no impact on ability to purchase 14 7 7 6 5 4 2 2 2
No, ability to purchase is a result of attending higher education and improved long-term economic stability 3 4 3 2 3 2 1 1 2
Don't know 14 18 17 16 13 11 8 5 10
Don't want to own 13 15 13 10 9 7 11 7 5
2015 Personal Income: Less than $25,000
$25,000 to $49,999
$50,000 to $74,999
More than $75,000
Yes, impacted 66% 77% 83% 68%
No, student loan debt had no impact on ability to purchase 5 5 3 3
No, ability to purchase a home is a result of attending higher education and improved long-term economic stability 2 2 3 3
Don't know 16 9 5 16
Don't want to own 12 8 6 11
Among NON-Homeowners: Reasons Why Student Loan Debt is Delaying Home Purchase
Among non-homeowners who believe their student loan debt is delaying
their ability to purchase a home, 78 percent believe the cause is the inability
to save for a downpayment because of debt.
Sixty-nine percent of those who are delayed don’t feel financially secure
enough and 63 percent can’t qualify for a mortgage due to debt-to-income
ratios.
Millennials are more likely to have a difficulty saving for a downpayment and
Gen Xers and Baby Boomers are more likely to have high debt-to-income
ratios.
2016 Student Loan Debt and Housing Report
% 20% 40% 60% 80%
Don't have financial know-how to confidently
navigate the housing market
Can't afford the preferred house or
neighborhood
Can't qualify for a mortgage due to debt-to-
income ratio
Don't feel financially secure enough because
of existing student debt to buy a home
Can't save for a downpayment because of
student debt
19%
47%
63%
69%
78%
Reasons for Delay Buying a Home
Among NON-Homeowners: Reasons Why Student Loan Debt is Delaying Home Purchase
2016 Student Loan Debt and Housing Report
Generation:
Younger
Millennials (born 1990-1998)
Older
Millennials (born 1980-1989)
Gen X
(born 1965-1979)
Younger
Boomers (born 1955-1964)
Older
Boomers (born 1946-1954)
Can't save for a downpayment because of student debt 83% 82% 68% 64% 63%
Don't feel financially secure enough because of existing student debt to buy a home 81 70 50 48 63
Can't qualify for a mortgage due to debt-to-income ratio 53 69 74 70 79
Can't afford the preferred house or neighborhood 50 52 39 24 47
Don't have financial know-how to confidently navigate the housing market 25 18 13 10 5
Student Loan Debt
Amount: $1 to
$5,000
$5,001 to
$10,000
$10,001 to
$20,000
$20,001 to
$30,000
$30,001 to
$40,000
$40,001 to
$50,000
$50,001 to
$70,000
$70,001 to
$100,000
More than
$100,000
Can't save for a downpayment because of student debt 70% 64% 70% 76% 77% 75% 83% 89% 84%
Don't feel financially secure enough because of existing student debt to buy a home 53 54 62 64 73 67 72 72 76
Can't qualify for a mortgage due to debt-to-income ratio 40 68 57 55 58 67 68 72 64
Can't afford the preferred house or neighborhood 38 35 39 43 42 49 50 56 55
Don't have financial know-how to confidently navigate the housing market 30 14 20 16 20 19 17 18 21
2015 Personal Income: Less than $25,000
$25,000 to $49,999
$50,000 to $74,999
More than $75,000
Can't save for a downpayment because of student debt 75% 82% 86% 67%
Don't feel financially secure enough because of existing student debt to buy a home 68 71 69 58
Can't qualify for a mortgage due to debt-to-income ratio 64 66 54 48
Can't afford the preferred house or neighborhood 42 50 55 48
Don't have financial know-how to confidently navigate the housing market 21 19 11 18
Among Homeowners: Student Loan Debt Delaying From Selling a Home and Buying Another
Thirty-one percent of current homeowners with student loan debt are also
facing housing hurdles and are unable to sell their existing home and buy
another property.
These homeowners face a variety of problems: 18 percent believe it is too
expensive to move and upgrade to a new home, 7 percent have problems
with their credit caused by student loan debt, and 6 percent are
underwater on their home.
Older Boomers are most likely to say that it is too expensive to move and
upgrade to a new home and Younger Boomers are most likely to have
credit problems from their student loan debt.
2016 Student Loan Debt and Housing Report
% 10% 20% 30% 40%
Yes, underwater on house because student
loan debt has limited ability to pay more
than just the bare minimum on home
Yes, problems with student loans have
impacted credit for a future mortgage
Yes, too expensive to move and upgrade to
a new home
No, student loan debt did not delay selling
home
Don't know
6%
7%
18%
33%
36%
Among Homeowners: Delay Selling and Buying a New
Home
Among Homeowners: Student Loan Debt Delaying From Selling a Home and Buying Another
2016 Student Loan Debt and Housing Report
Generation:
Younger
Millennials (born 1990-1998)
Older
Millennials (born 1980-1989)
Gen X
(born 1965-1979)
Younger
Boomers (born 1955-1964)
Older
Boomers (born 1946-1954)
Yes, too expensive to move and upgrade to a new home 11% 21% 19% 22% 33%
Yes, problems with student loans have impacted credit for a future mortgage 2 5 7 19 10
Yes, underwater on house because student loan debt has limited ability to pay more than just the bare minimum on home 2 6 10 4 5
No, student loan debt did not delay selling home 32 34 32 36 29
Don't know 54 33 31 19 24
Student Loan Debt
Amount: $1 to
$5,000
$5,001 to
$10,000
$10,001 to
$20,000
$20,001 to
$30,000
$30,001 to
$40,000
$40,001 to
$50,000
$50,001 to
$70,000
$70,001 to
$100,000
More than
$100,000
Yes, too expensive to move and upgrade to a new home 9% 12% 11% 15% 19% 16% 29% 22% 31%
Yes, problems with student loans have impacted credit for a future mortgage 6 4 5 7 5 5 7 8 9
Yes, underwater on house because student loan debt has limited ability to pay more than just the bare minimum on home 1 4 3 7 12 8 18 4
No, student loan debt did not delay selling home 43 41 43 40 37 28 28 21 17
Don't know 43 41 37 35 32 38 28 32 39
2015 Personal Income: Less than $25,000
$25,000 to $49,999
$50,000 to $74,999
More than $75,000
Yes, too expensive to move and upgrade to a new home 12% 19% 30% 28%
Yes, problems with student loans have impacted credit for a future mortgage 5 8 6 8
Yes, underwater on house because student loan debt has limited ability to pay more than just the bare minimum on home 3 8 11 5
No, student loan debt did not delay selling home 32 37 30 32
Don't know 48 29 24 26
Among Non-Homeowners and Homeowners Delayed: Length of Time Delayed From Purchasing
Both non-homeowners and homeowners expect to be delayed more than
five years from purchasing a home. One in five expect to be delayed three
to five years.
Six in ten Baby Boomers expect to be delayed for more than five years.
Those with higher amounts of student loan debt and those with lower
incomes expect to be delayed longer from purchasing a home than those
with higher incomes and lower amounts of debt.
2016 Student Loan Debt and Housing Report
Did not delay,
purchased a home
when ready
5% 0-6 months
1% 6 months-1 year
2%
1-2 years
7%
2-3 years
12%
3-5 years
21%
More than 5 years
52%
Length of Time Delay from Purchasing
Among Non-Homeowners and Homeowners Delayed: Length of Time Delayed From Purchasing
2016 Student Loan Debt and Housing Report
Generation:
Younger
Millennials (born 1990-1998)
Older
Millennials (born 1980-1989)
Gen X
(born 1965-1979)
Younger
Boomers (born 1955-1964)
Older
Boomers (born 1946-1954)
Did not delay, purchased a home when ready 2% 4% 10% 7% 0
0-6 months 1 1 0 2 0
6 months-1 year 2 2 1 1 7
1-2 years 8 8 6 5 0
2-3 years 15 12 12 8 7
3-5 years 24 21 20 14 24
More than 5 years 49 52 51 62 62
Student Loan Debt
Amount: $1 to
$5,000
$5,001 to
$10,000
$10,001 to
$20,000
$20,001 to
$30,000
$30,001 to
$40,000
$40,001 to
$50,000
$50,001 to
$70,000
$70,001 to
$100,000
More than
$100,000
Did not delay, purchased a home when ready 4% 8% 4% 5% 4% 6% 4% 5% 3%
0-6 months 2 1 1 1 0 0 1 0 1
6 months-1 year 7 1 3 1 4 2 2 1 2
1-2 years 18 11 6 9 5 7 8 7 6
2-3 years 20 21 18 14 14 12 9 10 7
3-5 years 18 23 27 23 25 17 17 18 21
More than 5 years 31 35 42 47 49 57 59 59 61
2015 Personal Income: Less than $25,000
$25,000 to $49,999
$50,000 to $74,999
More than $75,000
Did not delay, purchased a home when ready 2% 4% 9% 11%
0-6 months 1 1 1 1
6 months-1 year 2 3 1 2
1-2 years 7 7 7 7
2-3 years 10 14 15 15
3-5 years 22 20 23 23
More than 5 years 56 51 45 42
Student Loan Debt Effected Either Decision and/or Ability To Do
More than six in ten student loan borrowers believe student loan debt has
effected their ability to take a vacation or purchase a home.
About half of borrowers believe student loan debt has impacted their
ability to rent solo or change their current living situation.
Seventy-two percent of Older Millennials believe their ability to purchase a
home was effected and 68 percent of Younger Millennials say their ability to
rent solo or change their living situation was effected by their student loan
debt.
2016 Student Loan Debt and Housing Report
% 20% 40% 60% 80%
None of these
Own a pet
Rent or own closer to work or school
location
Start a small business
Purchase daily necessities
Purchase clothes
Purchase entertainment
Rent solo or change living situation
Continue with education
Purchase a car
Purchase a home
Take a vacation
8%
17%
28%
33%
38%
41%
43%
49%
55%
57%
62%
66%
Student Loan Debt Effected
Student Loan Debt Effected Either Decision and/or Ability To Do
2016 Student Loan Debt and Housing Report
Generation:
Younger
Millennials (born 1990-1998)
Older
Millennials (born 1980-1989)
Gen X
(born 1965-1979)
Younger
Boomers (born 1955-1964)
Older
Boomers (born 1946-1954)
Take a vacation 70% 72% 60% 57% 51%
Purchase a home 64 72 55 46 51
Purchase a car 61 62 52 48 49
Continue with education 64 55 48 43 37
Rent solo or change living situation 68 47 27 29 40
Purchase entertainment 49 47 34 33 37
Purchase clothes 45 44 34 30 40
Purchase daily necessities 40 42 32 29 42
Start a small business 32 38 30 27 35
Rent or own closer to work or school location 39 29 15 12 14
Own a pet 24 17 9 3 14
None of these 5 6 13 12 5
Student Loan Debt
Amount: $1 to
$5,000
$5,001 to
$10,000
$10,001 to
$20,000
$20,001 to
$30,000
$30,001 to
$40,000
$40,001 to
$50,000
$50,001 to
$70,000
$70,001 to
$100,000
More than
$100,000
Take a vacation 43% 49% 63% 61% 65% 67% 73% 79% 77%
Purchase a home 40 41 55 58 63 62 69 72 76
Purchase a car 33 46 55 58 59 57 62 62 65
Continue with education 39 46 61 57 62 56 61 60 42
Rent solo or change living situation 36 38 45 49 49 47 51 58 55
Purchase entertainment 28 37 39 40 42 42 46 50 57
Purchase clothes 27 34 34 35 40 40 46 51 53
Purchase daily necessities 36 30 30 32 40 33 43 47 49
Start a small business 19 20 26 31 29 33 40 46 44
Rent or own closer to work or school location 22 18 23 26 26 25 28 37 37
Own a pet 9 9 13 15 15 13 16 26 27
None of these 18 14 11 9 7 8 4 3 5
2015 Personal Income: Less than $25,000
$25,000 to $49,999
$50,000 to $74,999
More than $75,000
Take a vacation 64% 71% 68% 63%
Purchase a home 60 66 65 55
Purchase a car 60 57 57 49
Continue with education 56 59 46 45
Rent solo or change living situation 54 49 35 31
Purchase entertainment 44 45 41 35
Purchase clothes 43 42 38 29
Purchase daily necessities 41 38 30 30
Start a small business 32 36 36 25
Rent or own closer to work or school location 28 30 25 16
Own a pet 19 16 15 7
None of these 8 6 7 11
Methodology
In April 2016, SALT® distributed a 33 question survey written by NAR and SALT®
to 75,000 student loan borrowers who are currently in repayment. A total of
3,230 student loan borrowers completed the survey. The survey had a response
rate of 4.3 percent.
All information is characteristic of April 2016, with the exception of income data,
which is reflective of 2015. The median is the primary statistical measure used
throughout this report. Due to rounding, percentage distributions may not add to
100 percent.
©2016 National Association of REALTORS® and American Student Assistance®.
All Rights Reserved.
May not be reprinted in whole or in part without permission of the National
Association of REALTORS® and American Student Assistance®.
For reprint information, contact data@realtors.org.
2016 Student Loan Debt and Housing Report
American Student Assistance® (ASA) is a private nonprofit dedicated to
eliminating finance as a barrier to education and the dreams education
enables. ASA® helps people make better decisions about financing higher
education and repaying student loans, so they can become confident,
financially competent consumers. After working with millions of student
borrowers as a federal student loan guarantor, ASA combined 60 years of
knowledge and best practices into a powerful consumer literacy program
called SALT®. Working with more than 300 higher education institutions,
nonprofits, and corporations nationwide, SALT (saltmoney.org) provides
the tools and resources students need to better understand how to pay
for and pay back college costs.
2016 Student Loan Debt and Housing Report
The National Association of REALTORS®, “The Voice for Real Estate,”
is America’s largest trade association, representing 1.1 million members, including
NAR’s institutes, societies and councils, involved in all aspects of the real estate
industry. NAR membership includes brokers, salespeople, property managers,
appraisers, counselors and others engaged in both residential and commercial
real estate.
The term REALTOR® is a registered collective membership mark that identifies a
real estate professional who is a member of the National Association of REALTORS®
and subscribes to its strict Code of Ethics.
Working for America’s property owners, the National Association provides a facility for
professional development, research and exchange of information among its members
and to the public and government for the purpose of preserving the free enterprise
system and the right to own real property.
NATIONAL ASSOCIATION OF REALTORS®
RESEARCH DIVISION
The Mission of the National Association of REALTORS® Research Division is to collect
and disseminate timely, accurate and comprehensive real estate data and to conduct
economic analysis in order to inform and engage members, consumers, and policymakers
and the media in a professional and accessible manner.
To find out about other products from NAR’s Research Division, visit
www.REALTOR.org/research-and-statistics.
NATIONAL ASSOCIATION OF REALTORS®
Research Division
500 New Jersey Avenue, NW
Washington, DC 20001
202-383-1000
data@realtors.org
2016 Student Loan Debt and Housing Report
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