Student Loan Debt Can Delay Homeownership in Massachusetts For Decades

by | Feb 3, 2025 | Divorce |

With the state’s high student loan debt and home prices, it would take nearly 48 years to save for the down payment on a home in Massachusetts, according to a recent study by Zoocasa, an online real estate marketplace.

That finding is based on a starting salary of $64,291 for someone with a bachelor’s degree, the region’s median price for a home, and a 20 percent down payment. There are loan programs out there that require less or even no down payment. The monthly student loan payments are based on a standard 10-year repayment plan and a 6.87 percent interest rate.

According to the Education Data Initiative:

  • The average total student loan debt-to-income ratio for a new graduate is 61 percent.
  • After adjusting for inflation, the Class of 2020 graduated with the highest amount of debt, with an average balance of $44,020 in May 2024 dollars.
  • Before adjusting for inflation, the average student loan debt at graduation has increased 108 percent since 2007; after adjusting for inflation, the average debt increased 39 percent.

The Zoocasa report ranked Massachusetts third in the nation for student loan debt, behind California, where it would take 68.5 years to come up with a down payment, and Hawaii, where it would take just under 80 years. Without student loan debt and very little money to set aside each month, it would take 44.2 years to save enough for a down payment in Massachusetts, a testament to the high cost of housing here and the competition amid a shortage of listings. In a high-savings scenario, it would take 16.1 years, according to the report.

Should you be in the midst of a divorce or contemplating divorce, contact the Law Offices of Renee Lazar at 978-844-4095 to schedule a FREE one hour no obligation consultation.

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