A recent Zillow Consumer Housing Trends report showed that debt impacts people’s housing decisions. People are being affected by personal debt, whether it is medical, credit card, or student loan. Debt impacts Americans when deciding on a type of home, when to buy a home, ability to afford a down payment, and being approved for a mortgage. The report stats that people with medical debt are more likely to be denied a mortgage. People with student loan debt are putting off buying a home.
HOW DOES DEBT IMPACT PEOPLE’S DECISIONS?
The survey found that debt impacts people’s housing decisions in several ways. More than two thirds of renters have debt. They also found that a quarter of homeowners and renters in debt were denied a mortgage or rental agreement. Half of renters and 40% of buyers reported that they delayed buying a home because of student loan debt. Even when they do purchase a home, their debt impacts how much they are able to put down. Debt not only impacts people’s housing decision, but also causes financial sacrifices. 73% of renters and 68% of buyers with debt reported they had to make one if not more financial sacrifices to afford their home. They had to make lifestyle changes such as cutting back on vacations, decreased spending on entertainment and technology, and picking up additional work.
To read more about the report click here
ARE YOU READY?
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