NEW YORK (MainStreet) -- Everyone knows it's tough to buy a home if you're already shouldering a lot of debt. But how much damage is the skyrocketing level of student debt doing to the housing market?
Quite a bit, according to a study. And it's likely to be long-term damage, because student debt, which has soared to $1.1 trillion from $241 billion in the past 11 years, isn't going to shrink anytime soon.
The analysis by John Burns Real Estate Consulting finds that student debt will reduce home sales by 8% this year compared with normal levels. That translates to 414,000 fewer sales, worth $83 billion, assuming an average sale price of $200,000.
That's bad news for aspiring homeowners, real estate agents, builders and home-furnishing sellers.Continue Reading on MainStreet