We have reported before on the noticeable decrease of first-time homebuyers in the current market and many leaders in the industry have attributed this to the lack of affordable inventory for this younger demographic.
While that certainly explains part of the problem, a new analysis by the Consumer Finance Protection Bureau offers a fuller explanation of the obstacles standing between a twenty-something and their first home. Student loans are a larger culprit than previously realized, with three-fourths of the decrease in household formation being directly attributable to student loan debt. A further sobering statistic is that 7 million borrowers are in default, which is directly impacting their ability to qualify for financing. Click over to read the full summary of the comments by Rohit Chopra, student loan ombudsman for CFPB.
Have you worked with millennials struggling to pay for their first home? What advice have you given them to help them through the process?