BUFFALO, N.Y. (WKBW) - A new study from the Federal Reserve Bank of New York finds it's not avocado toast, but student loans keeping young adults from taking the leap into home ownership.
The study estimates rising student loan debt accounts for anywhere between 11 and 35 percent of the drop in home ownership among 28-to-30-year-olds between 2007 and 2015. In that same time period, home ownership dropped by 8 percent across the country in that age group.
Researchers found the yearly cost per student of college, including fees and tuition, rose by $3,843 between 2001 and 2009, and that students were taking about half of that on as student loan debt. The increase accounts for a rise in student debt from $360 billion in 2004 to $1.2 trillion in 2016. In that same year, home ownership among 30-year-olds was at 21 percent.
These numbers can affect other parts of the economy. The study found almost half of people ages 23 to 25 are still living at home with their parents, and that means they aren't spending money on the products that come with home ownership -- like appliances and electronics.
The full report from the Federal Reserve Bank here.