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August 2017   Volume 43, Number 8      
 

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Why More Millennials Are Finally Buying Real Estate

For the past ten years, since the Great Recession forced many Americans to put their financial goals on hold, the real estate industry has been waiting for millennials to arrive on the home-buying scene, to begin buying, selling, fixing up and financing property.

One of the reasons that millennials are now starting to buy homes is that they are finally getting married and having children. According to the latest figures from the National Association of Realtors, millennials accounted for 34 percent of home buyers in 2016.

However, the real estate industry is still nervous about millennials’ ability to buy homes given that many millennials have cash-flow issues, thanks to a huge amount student loans. Roughly 44 million Americans are currently paying off student loans these days, to the tune of $1.4 trillion. The average amount of student-loan debt has tripled in the last 20 years, and 2017 graduates carry about $36,000 worth of student loans as they left college and started their adult lives.

Here are some facts about millennials and student-loan debt that are problematic for the real estate industry:

  • Roughly 58 percent of college graduates have student loans.
  • 44 percent don’t know the difference between private and federal loans.
  • 37 percent don’t know what interest rate their loans carry.
  • 15 percent don’t even know how much they owe.

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In this issue:

The 10 Fastest Growing Cities in the U.S.

3 Million First-time Homebuyers Shut Out of Home Market in Past Decade

America’s Hottest Real Estate Markets: May 2017

Home Prices Are Increasing, But Mortgages Are Still Cheap

Fed Announces Third Rate Hike in 7 Months

Industrial Real Estate Development Reaches 10 Year High

Real Estate Companies Are Moving to the Cloud

Mortgage Applications Down 12 Percent Since 2016

Why More Millennials Are Finally Buying Real Estate

Why More Real Estate Firms Are Now Offering Mortgages



 


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