Homeownership obstacles for millenials

[Carol Martinez]

This is an interesting Globe article about student loan debt and the obstacles that keep millennial from purchasing homes. At the CDC we have done a lot of research into the issue of student loan debt. It is a major factor that keeps young people from buying. Some communities across the country have created programs that help pay off student loans if people buy and agree to stay for a set time in their cities and towns. Some companies do this to attract talent in the job market. Right now if a person works ten years for a non profit or government agency and pays their loan on time portions of it are also forgiven. This has helped the public and non profit sector keep good people. As an incentive to attract young people and families to choose to buy in Allston Brighton as opposed to Watertown, Waltham and outer suburbia it could work. The difficulty comes in finding funds that do not take away from families who are in great need of affordable housing and figuring out how to make sure the program really makes people stay here.

http://www.bostonglobe.com/lifestyle/real-estate/2016/09/30/student-loan-debt-causes-chain-reaction-housing-market/p6DGy4f2px9vadMJnKr39O/story.html

[Eva Webster]

Thanks for the interesting link, Carol.  No question — the millennials have been screwed (which is why so many were supporting Bernie — and who knows how they will vote in November, if at all). In addition to heavy student debt, they have been forced into a job market where “gigs” and part-time employment predominate, while stable jobs with predictable pay raises, like their parents used to have, are hard or impossible to come by.  Medical costs were supposed to go down, but have gone up, which affects non-millennials as well.

All of this of course means that some people are not in a position to become homeowners, and others may not be ready to grow roots just yet — so rental housing is here to stay (it will always be needed). But at the same time, condos are selling very well because impoverished/unmarried millennials are not the only population segment that is drawn to walkable, conveniently located urban neighborhoods. People who make good money in the tech sector, two-income couples, folks with sudden windfalls due to inheritance or stock option deals, and empty-nesters who no longer want to maintain suburban houses, would likely be interested in buying attractive new condos in A-B, as homes for themselves, if such housing was only available here.

On 9/30/16, 10:43 AM, "Carol Martinez" <allstonbr...@googlegroups.com on behalf of seanc...@gmail.com> wrote:

This is an interesting Globe article about student loan debt and the obstacles that keep millennial from purchasing homes.  At the CDC we have done a lot of research into the issue of student loan debt.   It is a major factor that keeps young people from buying.   Some communities across the country have created programs that help pay off student loans if people buy and agree to stay for a set time in their cities and towns.  Some companies do this to attract talent in the job market.  Right now if a person works ten years for a non profit or government agency and pays their loan on time portions of it are also forgiven.  This has helped the public and non profit sector keep good people.   As an incentive to attract young people and families to choose to buy in Allston Brighton as opposed to Watertown, Waltham and outer suburbia it could work.  The difficulty comes in finding funds that do not take away from families who are in great need of affordable housing and figuring out how to make sure the program really makes people stay here.  

http://www.bostonglobe.com/lifestyle/real-estate/2016/09/30/student-loan-debt-causes-chain-reaction-housing-market/p6DGy4f2px9vadMJnKr39O/story.html

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