Trulia’s latest study reveals that the speed at which individuals with a college degree save for their initial 20% down payment on a house is not quicker compared to those without a degree. “In particular markets, the income earned by households with a college degree is not substantially higher than that of those without,” says Ralph McLaughlin, housing economist at Trulia. “The additional financial pressure of student debt for households with a college degree slows down their ability to save for a down payment.”
A home is typically the most significant purchase a person will ever make, yet there seems to be a slump in buying activity among the Millennial generation. Often, the finger of blame is pointed at student loan debt. Although attaining a college degree generally leads to higher overall earnings, the mounting weight of student loans can eat into those savings, making it more difficult to gather the necessary down payment.
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