More potential first-time homebuyers are living with their parents instead of shopping for a home, further stalling a housing recovery.
Mortgage rates are at record lows and home values have dropped -- significantly in some areas of the country -- since the heights of the housing bubble, yet young people are locked out of the market. A report in Housing Wire suggests that mounting student loan debt plays a big part in the roadblock to homeownership. John Burns Real Estate Consulting estimates that total student loan debt is $865 billion, more than all other outstanding household debt except mortgages.
Burdened by debt and poor job prospects, nearly 6 million people age 25 to 34 live with their parents, a 26-percent increase from 2007, when the economy started its slide. The homeownership rate for adults age 25 to 29 is at its lowest rate in 17 years, according to Burns and U.S. Census data.
Are you still living with your parents due to student debt and low job prospects, or are your adult children living with you?
Keep up with your wealth and mortgages and follow me on Twitter.
Get more news, money-saving tips and expert advice by signing up for a free Bankrate newsletter.