We've already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require a password.
Student Loan Debt’s Impact on Home Ownership
Excessive Student Loans: The Harbinger of Death to a Financial Future (Journal of Financial Service Professionals, 2024) E
“In a study of Canadian postsecondary graduates, it was found that those who had borrowed using student loans did not differ significantly from those who had not borrowed in terms of employment rates, total personal income, and likelihood of having a registered pension plan. However, it was found that those who borrowed were less likely to have savings and investments or to own their homes.4 In a similar vein, a study by Mezza et al. estimated that each increase in student loan debt of $1,000 results in a reduction in the home ownership rate of approximately 1.8 percent. Their study focuses on individuals in the age range of 22 to 32 who attended 4-year public institutions.”
Fifth of Millennials Say They’ll Never Own a Home: Survey Also Shows Half of Gen Zers Say Homes Too Expensive to Consider Purchasing in Near Future (Journal of Business, Nov. 22, 2023) E
“About 1 in 5 Gen Zers and 16% of millennials say they need to pay off their student loan debt before they’re able to buy a home.”
The Return of Student Loan Payments Could Put the Squeeze on Homebuyers (Money, Jul. 26, 2023)
“For housing, we should celebrate that many Americans were able to get a head start on saving for a down payment thanks to the forbearance program,” Ali Wolf, the chief economist of the housing-research firm Zonda, wrote in a June blog post. “As that policy ends, we need to understand that [those gains] since 2020 will again reverse.”
Student Loan Debt and First-Time Home Buying in USA (International Journal of Housing Markets and Analysis, Jan. 10, 2022)
“The authors find that having student loan debt does not by itself prohibit first-time home buyers. On the contrary, having student loan debt increases the likelihood of homeownership by 15.1%. People with student loan debt, however, buy homes that are 39.2% less expensive and have 58% less home equity compared to first-time home buyers without student loans. In addition, it is found that the amount of student loan debt is important. People with student loan debt above the median amount among people with student loan debt ($35,000) are 27% less likely to be first-time home buyers.”
The Impact of Student Loan Debt (National Association of REALTORS®, Sep. 2021)
- While the plurality say student loan debt has not impacted any of the tested employment decisions (42%), others say debt has kept them in disliked or uninteresting jobs, forced them to take second jobs, or take a job outside their preferred field.
- Over one quarter of student loan debt holders say their debt has impacted their decision or their ability to purchase a home (29%), take a vacation (35%), or purchase a car (31%).
- Approximately half of student loan debt holders say their debt has impacted their life choices. One third say it has impacted their ability to continue their education (33%) while 14% say it has impacted their decision to start a family.
Homeownership among Young Americans: A Look at Student Loan Debt and Behavioral Factors (The Journal of Consumer Affairs, March 1, 2018) E
From Abstract: “Three key findings arise from the research. First, life cycle and demographic characteristics, such as marital status, education, and income, continue to be strong predictors of homeownership. Married households with a college degree and children are among the most likely to own a home. Second, young adults with student loan debt are no more or less likely to own a home than someone without debt after controlling for a number of factors; however, students who have already paid off their loans are more likely to own a home. Finally, respondents who express a willingness to take risks in finances are more likely to own a home while those who are more conscientious are less likely to own a home.”
Student Loan Guidelines for Getting a Mortgage (Bankrate, Jun. 17, 2025)
Student loans are factored into debt-to-income ratio (DTI) for prospective homebuyers. “Maximum DTI ratios are typically set at 43 percent, depending on whether it’s a government-backed loan or not,” says Leslie Tayne, a debt relief attorney in Melville, New York. “That means your monthly debt obligations divided by your monthly income should not exceed 43 percent for best odds of loan approval. Those with higher incomes, lower loan amounts and lower overall debt will have a lower DTI ratio, increasing your odds of loan approval.”
Student Loans Are Delaying Homeownership by 10 Years for 1 in 4 Grads – and 2026 Repayment Changes May Push It Further (realtor.com®, Jan. 8, 2026)
More than half of millennials (53%) have been saving for a home for at least five years, yet still haven’t reached a down payment, according to a survey from Clever. A key reason is that debt outweighs savings for many: Nearly 1 in 4 millennials (24%) has more debt than savings, and 75% are still carrying some form of nonmortgage debt. About 1 in 5 millennials say they’re worried they won’t qualify for a mortgage due to their debt load, and nearly the same share say they’re concerned they won’t be able to afford the mortgage once they do. Additionally, as of July 1, 2026, new student loan borrowers’ repayment plan options will decrease from 6 to 2 options, and existing borrowers may be automatically enrolled in the income-based Repayment Assistance Plan unless they opt out by mid-2028.
Mind the Gap: Home Price Differences by Race and Student Debt (National Association of REALTORS®, Apr. 27, 2021)
Buyers who have student debt purchase homes that are 18.8% less expensive than other buyers. In the immediate term, these home buyers who purchase lower priced homes than other buyers are more likely to be impacted by housing affordability constraints. This has already been apparent in recent years as White/Caucasian homeownership has not only largely rebounded from the Great Recession, and remains more than 30% higher than Black/African-American households and 25% higher than Hispanic/Latino households. However, in the long-term, these buyers are more likely to lose out on housing wealth accumulation.
eBooks & Other Resources
eBooks
Generation Debt: How Our Future Was Sold Out for Student Loans, Bad Jobs, NoBenefits, and Tax Cuts for Rich Geezers—And How to Fight Back (eBook)
The Impoverishment of the American College Student (eBook)
Sold My Soul for a Student Loan (eBook)
Quit Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required (eBook)
Have an idea for a real estate topic? Send us your suggestions.
The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.
