96 Percent of U.S. Housing Markets Still Affordable for Recent Grads Saddled With Student Loan Debt - Seite 2

States where student loan debt had the least percentage impact on income needed to buy a median priced home included California (graduates with student loans need to earn 12 percent more than graduates without student loans), New York (17 percent), Virginia (17 percent), Massachusetts (18 percent) and Wyoming (19 percent).

Debt or no debt, some markets are unaffordable
There were 12 counties of the 494 analyzed where students making the median income could not afford to buy a home, even without student loans

Some of the counties that were unaffordable for recent graduates making the median income even without student loans were led by San Francisco County, where the minimum income needed to buy a median-priced home without student loan debt was $63,301 less than the county's median household income. Other counties unaffordable even for recent graduates without student loans included New York County (Manhattan, with $55,306 median income deficit), Kings County, N.Y., (Brooklyn, with a $35,989 median income deficit), San Mateo County, Calif., ($30,715 median income deficit), and Marin County, Calif., ($26,886 median income deficit).

Student loan debt makes or breaks affordability in just seven of counties analyzed
There were only 7 counties out of the total 494 analyzed where having student loans means the difference between being able to afford to buy a home or not for recent graduates making the median household income. Those counties were San Diego County, Calif., and Westchester, N.Y., and five other California counties: Sonoma, Monterey, San Luis Obispo, Yolo and Napa.

Local broker perspective
"We are currently working with a couple with student loan debt from graduate school that said getting approved for a mortgage and finding a home is one of the most difficult things they've done," said Chad Ochsner, owner/broker at RE/MAX Alliance, covering the Denver market. "People are increasingly more concerned about growing undergraduate debt and the limits it may place on graduates, but the same concern doesn't usually extend to graduate students who usually have higher loans to pay off."

Report methodology
Median sales prices from June 2014 were used as the median home price in most states, but in some non-disclosure states and other states with insufficient sales deed data, the median list price was used.

Annual median household income data came from the U.S. Census Bureau for 2000 to 2012. Annual median household income for 2013 to 2014 was estimated based upon U.S. Census Bureau 2000 to 2012 numbers and then adjusted for current market conditions.