Over the past decade home ownership levels have continued to decline. Research by the Federal Reserve Banks of New York suggests many Millennials are too strapped with college debt to buy homes.
Since 2009, student debt has doubled. At the same time that college tuition has skyrocketed, enrollment just keeps chugging along. Students are just covering the higher tuition with more loans. The New York Fed study shows that from 2007 to 2015 the increase in student debt was a major factor in the decline in home ownership for age 28-30 year-olds.
The economic impact reaches farther than the housing market. A large part of consumer spending depends on home ownership, as homeowners pay for all that stuff — like renovations, improvements, appliances, etc. Economists fear the high cost of education could have a substantial long term impact on economic growth.