Student debt woes feed multifamily markets
College student debt is delaying home buying and keeping young adults in multifamily housing longer than previous generations, reported CBRE.
Student debt delayed saving for a down payment for 60 percent of younger home buyers in 2018. And in 2018, at graduation, 65 percent of college students held student debt.
The amount of student loans for each student with student debt has been rising, too. In 2019, the average level of federal student debt per loan recipient was $35,200, up from $20,500 a decade ago.
The financial challenges of buying a home, including holding student debt, has also contributed to younger adults' delaying other major life decisions that often trigger home buying (e.g., getting married or starting a family).
The bottom line for multifamily housing, however, is clearly positive. High levels of student debt have co