WASHINGTON, DC--(Marketwired - Oct 22, 2014) - Nearly one-out-of-four Americans knows someone who has delayed buying a home because of student loan debt, according to findings from the second annual America at Home survey commissioned by NeighborWorks America, a national nonprofit community development corporation based in Washington, DC.
While the survey shows 60 percent of adults say that owning a home is either the "most important" or a "very important" part of the "American Dream," the burden of student loan debt and today's overly tight lending environment appears to be working against many potential homebuyers.
Though it is not surprising those with student loans are wary of increasing debt levels by purchasing a home, it is important to note the powerful weight those with student loan debt express on their ability to be a potential buyer.
Additional key findings from the survey:
"Earning a postsecondary degree is increasingly critical in the United States, but student debt is preventing some Americans from purchasing a home and fully fulfilling this 'American Dream' aspiration," said Chuck Wehrwein, acting CEO of NeighborWorks America. "If we don't mitigate the effect student loan burden is having and will have for years to come on homeownership, the country will lose a significant amount of economic activity and hundreds of thousands of people will be unable to benefit from the stability and financial value that homeownership has been proven to offer."
The Need for Homebuyer Counseling
For those with student loans whose debt-to-income ratio pushes them outside the traditional mortgage approval box, NeighborWorks believes that lenders should consider the role housing counseling and education can make toward reducing risk for these borrowers. According to the survey, 25 percent of consumers with student debt say they would go to a housing counselor for information, compared to 13 percent of consumers without debt.
"The earnings potential for college graduates increases over time," explained Wehrwein. "By prudently investing in these graduates and counseling those who aspire to homeownership, more Americans can put down stronger community roots and become a larger part of our economy."
Editor's Note: Widmeyer Communications, a Finn Partners Company, conducted the national representative survey among 1,000 U.S. adults using a random digit dial (RDD) sample. The survey has a margin of error of +/- 3.1 percentage points at a 95 percent confidence level.
For a copy of the full findings, please go to http://neighborworks.org/Homes-Finances/Homeownership/Survey-Results
About NeighborWorks America
NeighborWorks America has created opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. In the last five years, NeighborWorks organizations have generated more than $22.5 billion in reinvestment in these communities. NeighborWorks America is the nation's leading trainer of community development and affordable housing professionals.
Contact Information:
Contact:
Douglas Robinson
202-760-4062
drobinson@nw.org