Real estate website PropertyShark surveyed over 2,100 U.S. renters to discover the two main reasons why young people in the millennial generation are having difficulty breaking into the housing market. Student loan debt and expensive down payments ranked the biggest issues. Over a third of the surveyed, or 35%, say the down payment is the biggest obstacle with student debt following with 20%. Other obstacles cited in the findings include, credit score with 16%, increasing home prices with 13%, economic factors with 10%, and job insecurity with 9%.
All three generations agree that the down payment is one of the most significant obstacles, which makes sense. The average down payment on a home is 20 percent, reports financial site SmartAsset. With a national median home price just under $280,000, a typical down payment would be a whopping $56,000.
The burden of student loans, which weighs especially heavily on younger generations, doesn't help, either. More than 44 million Americans have borrowed to pay for school, and their debt surpasses $1.4 trillion. The average debt for 20-year-olds is $22,135 and for 30-year-olds, it's $34,033.
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