By R.A. Schuetz
Updated 10:17 am CST, Thursday, November 15, 2018
Mac Guile, who runs the meat department, in his Walmart Academy graduation cap and gown at the Walmart in Fulton, N.Y., July 17, 2017. Guile, who started at Walmart at 19 as a janitor, says the most useful lesson he learned at the Walmart Academy was how to motivate his workers. (Roger Kisby/The New York Times) lessMac Guile, who runs the meat department, in his Walmart Academy graduation cap and gown at the Walmart in Fulton, N.Y., July 17, 2017. Guile, who started at Walmart at 19 as a janitor, says the most useful … more
Photo: ROGER KISBY, STR
Photo: ROGER KISBY, STR
Student debt reached record levels this year at $1.56 trillion. That debt should command the attention of the real estate industry, according to a new report by Zillow.
Nationwide, one out of every three renters planning to buy a home within the upcoming year have some form of student debt. And the Zillow Housing Aspirations Report says that people paying off student debt, either for themselves or someone else, can afford to pay roughly $100,000 less for a home than they could otherwise.
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“For today’s generation of young home buyers, who came of age in a period of rapidly rising education costs, student debt payments can delay the pace of down payment savings and put a dent in their max price point once they do decide to buy,” said Zillow Senior Economist Aaron Terrazas. “With for-sale supply still tightest for the most affordable homes but increasingly available at higher prices, even a small reduction in a buyer’s target price point can result in substantially fewer options.”
In Houston, Zillow says a median earner can afford a $384,600 home. But a median earner with the average monthly payment for student debt, $388, could only afford a $292,200 home.
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