Despite an unwillingness to buy, 18-35 year olds are able to purchase homes, according to Cole Smead of Smead Capital Management. In this Video Spotlight, Smead talks with CNBC about his bullish thoughts on U.S. housing.
“[18-35 year olds] will tell you they have student debt or credit cards in their way, but when you look at the gross amount of income that they pay towards det, its the lowest amount of debt in 35 years,” Smead notes.
“It’s not a question of whether they can, it’s been their willingness,” he adds.
Doug Duncan, SVP and Chief Economist at Fannie Mae, recently sat down with DS News to discuss how buyers can take advantage of the low-inventory environment, the impact student debt is having on housing, and how a recession could impact millennials coming into the housing market.
“The evidence we saw was that people were buying [homes] at a point in time when they had amortized enough of it [student debt] so that their debt-to-income ratio wasn't an issue," Duncan said. "Simply because you have student debt doesn't necessarily mean that you can't get a mortgage. There is a significant cohort of folks for whom that's not an issue.”