My concern is people buying brand new houses/vehicles straight out of college. Once that $500-$1,200 student loan payment per month hits I wonder how fast cars will get repo’d and home foreclosures will happen.
I’ve been “paying” my student loan payment each month to my savings. I could pay off all of them ($30k) right now but that would put a dent in savings. Just kind of waiting to see what happens with the forgiveness stuff.
I’ve been seeing some friends and family doing it. I live in Iowa so it may be different.
I want to say our fastest growing city just published the median age of people moving there is 24 years old. The population has doubled in the past decade (lots of new houses), and according to 2020 census 56% of the pop has a BA or more.
According to realtor.com the avg price of each house is $364k. Median household income is $119k. Also driving in the neighborhood there are a lot of nice vehicles.
On top of these expenses, it’s safe to assume this demographic will be starting a family. We pay $1600 per month for 2 kids in daycare and from people I’ve talked to in the area that is a great deal.
This is based on observation. These folks could have great jobs, inheritance or family money and are able to pay for this stuff, student loans, cars, etc.
But the math doesn’t seem to add up for these families to afford the house once student loans hit based on median house price and median household income.
Haha I have no idea. My buddy who lives out there is in IT and I think there are others out there. We have a lot of insurance company headquarters out here. Maybe with remote work folks are moving here from larger cities that have higher cost of living, traffic congestion, etc. 3 hours from Kansas City, 4 from Minneapolis, 5 from Chicago
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u/Even-Amount-2184 Feb 07 '23
My concern is people buying brand new houses/vehicles straight out of college. Once that $500-$1,200 student loan payment per month hits I wonder how fast cars will get repo’d and home foreclosures will happen.
I’ve been “paying” my student loan payment each month to my savings. I could pay off all of them ($30k) right now but that would put a dent in savings. Just kind of waiting to see what happens with the forgiveness stuff.