The lifeblood of the American housing market is the first time buyer. Whether newlywed, just out of college, or looking to make that first big purchase, the first time buyer keeps houses affordable.

However, due to high student loan debt, young people have had to replace their typical first big purchase (homes) with another (education):

2012 was the first year in which young people with student debt had lower home ownership rates than people without student debt.

The impacted credit scores from high student loan debt also prevent first time buyers from getting mortgages.

When student loans get out of control, they don’t exist in a vacuum. They can create a ripple effect throughout the economy, and without a continual crop of young and eager home buyers, the housing market will have trouble making a full recovery.