TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/567977
Th e M Rep o RT | 7 Source: Trulia Trends "The Debt of Wrath: Do Student Loans Affect Saving for a Home?" A ccording to Trulia, saving for a down payment is one of the biggest hardships on the road to homeownership. A recent Trulia survey determined that 30 percent of those between 25 and 30 years old in the U.S. said that they are currently trying to save for a down pay- ment in the next two years. In addition, Trulia research found that college degrees hinder young millennials from saving toward a 20 percent down payment on a home due to student loan repayment, but in the most expensive markets, only those with a college degree will be capable of saving up enough for a home in their lifetime. "A college degree undeniably comes with perks, including better long-term job prospects and higher lifetime earnings," said Ralph McLaughlin, a housing economist at Trulia. "But many millennials who get a college degree must pay back student loans, making it more difficult to save for a down payment in the short run." For millennials, deciding between getting an education or affording a home can seem like a no-win scenario, which is why Trulia singled-out the fastest markets for saving toward a down payment—whether you are struggling with student loan debt or not. Detroit, MichigAn First on this list is Detroit, Michigan, where a 25-30 year old could save for a down payment in 4.1 years with a college education with a super low down pay- ment of $21,644. Detroit, Michigan Detroit managed to make it to the top of the list once again, where millennials with no college education can save up for a down payment fast within a time frame of 5.3 years to save $22,145 for a down payment. cAMDen, new jersey Camden, New Jersey came in second with down payment sav- ings occurring in 5.3 years for millennials with a degree and a down payment amount of $43,348. Dayton, ohio The ever-popular Dayton, Ohio took second place, allow- ing young buyers to save $26,339 in 5.3 years for a home down payment. DAyton, ohio Finishing out the top three, Dayton, Ohio allows millennials to make a down payment of $26,534 and save for the payment in 5.7 years. buffalo, new york Millennials are able to save up for a down payment in 5.4 years in Buffalo, New York. During this time period, a potential buyer can save up $32,483 to put toward a down payment. Akron, ohio Akron again placed Ohio on the list, with a down payment time frame of 5.9 years and a down payment amount of $29,861. akron, ohio Coming in fourth place, Akron, Ohio offers homebuyers the chance to save up for a down payment in 5.7 years clevlAnD, ohio Ohio finishes up with Cleveland also making the list. The third Ohio market to make the top five, millennials in Cleveland can save up to purchase a home in 6.1 years and make a down payment of $30,437. toledo, ohio Like the list for grads, Ohio wraps up this top five list for non-grads as well. Millennials in Toledo can save up a down payment in 5.8 years. In this time, they would be able to save $27,875. Fast for Grads Trulia identified the best housing markets where millennials could save for a 20 percent down payment quickly— even if they are also paying down student loan debt. Fast for Non-Grads For those millennials who don't have college degrees (and thus aren't saddled with student loan debt), Trulia nar- rowed down those markets where they could save for a 20 percent down payment quickly.