The Wall Street Journal's Nick Timiraos cites a report from John Burns Real Estate Consulting that says higher levels of student debt will reduce U.S. home sales by around 8 percent this year.
The report indicates that around 35 percent of households under age 40 have monthly student debt payments exceeding $250, up from 22 percent of households in 2005. For the borrowers paying this monthly amount, the study estimates their purchasing power is reduced by $44,000. Since 2005, approximately 3.8 million additional households have at least $250 per month in student debt.
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