More millennials are renting than other demographics. New data reveals that 60% of rental housing applicants between 2011-2015 were millennials, says CoreLogic's Jianjun Xie. With more millennials renting, it means there are fewer buying homes.
Student loan debts are one of the heaviest burdens for millennials to bear, and are barring them from home ownership. Outstanding student loan debt has tripled over the past decade, increasing from $380 billion in 2004 to $1.3 trillion in 2015. The average student loan balance reached $31,900 in 2015 for age group 20-34.
Similar to the outstanding student loan balance, the portion of millennial renters age 20-34 who had student loans also increased every year but one since 2008. This is a 21 percent increase from 2008, when is stood at 38 percent, to 2015, when it stood at 48 percent. Indeed millennials have the highest percentage of student loan debt compared with older age groups. Considering the declining home ownership rate and the increasingly hot rental market, the growth of student loan debt is likely an important factor preventing millennials from saving for a down payment to buy a home and maintaining their rental status for a longer period of time.