Student Loans & Homeownership [2026]: Data Analysis

Report Highlights. Homeownership among recent college graduates declines 1.8% for every $1,000 of their student loan debt.

37% of first-time homebuyers have student loan debt.
First-time homeownership is at a record low, and the median age among first-time homeowners is 40 years old.
61% of Millennial renters cite student loan debt as a reason they haven’t bought a home.
51% of all student loan holders say their debt delayed them from purchasing a home.
First-time homebuyers with student loan debt spend an average of 39.2% less on their homes than buyers without student debt.

Grouped bar graph: Average Monthly Payments, Mortgage & Student Loan in 2016 ($1,318 mortgage and $393 student loan) and in 2025 ($2,005 mortgage, $431 student) according to the Federal Reserve Board of Governors, the Federal Housing Finance Agency, and the U.S. Department of Education

How Student Loan Debt Impedes Homeownership

Statistics indicate that student debt in general correlates with decreased homeownership; it may decrease prospective homeowners’ ability to make a down payment and to qualify for a mortgage (and most Americans cannot afford to purchase a home without a mortgage).

People with student loan debt over $35,000 are 27% less likely to buy a home.
Between 2005 and 2014, homeownership declined 5.8%; homeownership among individuals aged 24 to 32 years old dropped 20.0%.
Also between 2005 and 2014, student loan debt among 24- to 32-year-olds rose by $3,300.
Up to 20% of the decline in homeownership among 24- to 32-year-olds may be attributable to increased student loan debt.
In one model, a 10 percentage-point increase in student loan debt led to a 0.3 percentage-point decline in homeownership.

How Student Loan Debt Delays Home Purchase
Demographic^*	Delayed Home Purchase	Delayed Home Purchase 5+ Years
All Adults	50%	20%
Male	63%	22%
Female	36%	18%
Up to 27 Years Old	59%	11%
28 – 43 Years Old	70%	23%
44 – 60 Years Old	51%	22%
61 – 78 Years Old	28%	16%
Income Under $50K	45%	25%
Income $50K – $100K	49%	21%
Income $100K+	55%	17%
No College Degree	39%	16%
Bachelor’s Degree	55%	24%
Postgraduate Degree	58%	22%

^*Among adults who have or had student loan debt within the last two (2) years and who currently own homes.

Student Loan Debt-to-Income

A high debt-to-income ratio (DTI) reduces mortgage eligibility, which then excludes potential buyers from homeownership.

45% of student debt holders believed that their poor debt-to-income ratio disqualified them from getting a mortgage in 2021.
The U.S. Consumer Finance Protection Bureau recommends a 36% DTI to qualify for competitive mortgage rates.
A 43% DTI is generally the upper limit to qualify for a mortgage with most lenders; this figure includes the prospective mortgage payment.

Horizontal stacked bar graph: Home Buyers by Generation from 2022 to 2026 according to the National Association of Realtors

Student Loan Debt’s Financial Impact

Student loan payments impact a borrower’s credit score (either positively through on-time payment or negatively through delinquency) and limit a borrower’s ability to accumulate wealth through savings and investments.

36% of student loan debt holders say student loan debt delayed them from moving out of a family member’s home.
72% of student debt holders who are not homeowners believed their debt would delay them from purchasing a home for anywhere from at least several months to more than 8 years.
19% of student debt holders who are not homeowners specifically believed their debt would delay them from purchasing a home for more than 8 years.
Among indebted student borrowers with postgraduate degrees, 22% don’t expect to be able to purchase a home for at least 8 years.
38% of homeowners with student loan debt delayed moving out of a family member’s home due to their education debt.
10% of student loan debt holders continue to live with family members due to their education debt.
17% of student loan debt holders say student loan debt delayed them 2 years or more from moving out of a family member’s home.
45% of homeowning adults who had student loan debt within the last two (2) years and who make under $50,000 per year postponed home purchase as a result of education debt.
33% of people who have or had student loan debt and who make under $50,000 per year say student loan debt affected their decision or ability to purchase a home.

Grouped bar graph: Homeownership Rates by Educational Attainment according to the U.S. Census Bureau

Other Factors Influencing Homeownership

Other factors that may influence homeownership make it difficult to accurately quantify the impact of student loan debt.

A college degree increases the likelihood a woman will have a marriage that lasts 20 years or more by 59.2%.
Households with children are more likely to own homes; with each additional child after the first there is a 4.3% increase in homeownership rates.
The national homeownership rate peaked in 2004 at 69.1%; as of the first fiscal quarter (Q1) in 2026, the homeownership rate is 65.3%.
In 2025, the single-family home prices hit historic highs; the median single-family home was equivalent to five (5) times the median income.
Homeownership rates among college graduates are higher (67.4%) than among former college students who did not graduate (45.6%).

Horizontal stacked bar graph: Homeowners & Renters by Educational Attainment of Householder according to the U.S. Census Bureau

Student Loan & Homeownership Demographics

Economists and sociologists generally agree that certain socio-cultural factors influence homeownership among some demographics more than others. In other words, minorities in general may struggle to attain homeownership due to factors beyond their personal control.

While 29% of bachelor’s degree holders graduated without student debt in the Class of 2016, 14% of Black bachelor’s degree holders did not have debt.
Black bachelor’s degree holders were the most likely to owe $40,000 or more in student loan debt at graduation (33% compared to 18% all bachelor’s holders).
Asian bachelor’s degree holders were the least likely to borrow (41% did not) and the least likely to carry high amounts of debt (9% owed $40,000 six years after graduation).

Line graph: Average Mortgage Payment as of Fourth Fiscal Quarter according to the Federal Housing Finance Agency

Student Loans & Homeownership Among Generations

Simply having student loan debt does not seem to impact homeownership, but student debt appears to be a greater obstacle to younger generations, particularly Millennials (b. 1981-1996).

Among Millennials who have or had student loan debt within the last two (2) years, 60% delayed buying a home due to student debt.
35% of Millennials who ever had student loan debt say that debt prevented or postponed homeownership.
Among homeowning Millennials who have or had student loan debt within the last two (2) years, 70% say student loan debt postponed their home purchase; 23% delayed for five (5) years or more.
53% of Generation X (b. 1965-1980) who have or had student loan debt in the last two (2) years delayed homeownership due to that debt.
39% of Generation Z (b. 1997-2012) who had student loan debt within the last two (2) years postponed homeownership due to education debt.
37% of Baby Boomers (b. 1946-1964) with reported student debt within the last two years postponed a home purchase due to said debt.
19% of Baby Boomers who ever had student debt postponed homeownership due to that debt.
Among homeowning Baby Boomers who had student debt in the last two (2) years, 28% delayed a home purchase due to student debt; 16% delayed by five (5) years or more.

“Student loan repayments are forcing millions of young families to delay purchasing their first home, as they cannot afford to save for a down payment or qualify for a mortgage while also paying off student debt.” Transforming Student Debt to Home Equity Act, H.R. 7368, 117th Congress

Student Debt to Home Equity Programs

In recent years, lawmakers have made efforts to mitigate student debt if it helps people purchase homes. These programs give first-time home buyers who have a history of making student loan payments on time access to special opportunities, such as mortgage loans at below-market rates with relaxed qualification standards, discounts for purchasing government-owned homes, and additional financial assistance with down payments.

Case Study: Maryland Smartbuy Loan

The Smartbuy Loan Program from the State of Maryland’s mortgage program provides assistance to first-time home buyers with student debt.

Maryland Smartbuy 3.0 offers 15% off the purchase price of a home to help pay off a mortgagor’s existing student debt.
The maximum amount available from Maryland Smartbuy 3.0 is $20,000.
The student debt payoff is a 0% interest loan that is fully forgiven after the beneficiary lives in the home for 5 years.
Eligibility requirements include a 720 credit score and a minimum of $1,000 in student loan debt.

See more program details and eligibility requirements on the Maryland Mortgage Program website.

Case Study: Ohio Grants For Grads Program

The Grants For Grads program provides homebuyers’ assistance for recent college graduates (within 18 months) through the State of Ohio Housing Finance Agency.

This program offers down payment assistance in the form of 3.0% conventional loans or 3.5% government loans.
The down payment assistance is forgiven after five (5) years of residence in the State of Ohio.
Repeat home buyers may qualify but applicants must not have owned an interest in their primary residence within the last three (3) years.

See more program details and eligibility requirements on the Ohio Housing Finance Agency website.

Student Loan Debt & Homeownership