Crippling student loan debt continues to loom over would-be buyers causing them to delay the purchase of a first home. The troubling reality is that some borrowers may never be able to buy. On top of student loan debt, young home buyers have to worry about increases in home prices, much stricter lending standards, and an uncertain job market. The prevalence of good well-paying jobs necessary to pay off large loans in a timely manner is more difficult than ever to obtain.

Student loan debt has been identified as the main deterrent for first-time buyers. This is troubling for the real estate industry since part of it relies on these new home buyers to eventually turn into move-up buyers – people selling their first home in order to purchase a newer property. The new trend is to delay significantly before making that initial purchase.

First-timers in the marketplace dropped to just 28 percent in California, with 38 percent being the typical turnout. Before the recent recession, college graduates were seen as the class of people most likely to buy a new house since those who hold a degree have the chance at higher paying jobs. Now, there are more 30-year-old homeowners with student debt than those without it. Those new home buyers that do hold good jobs in this economy are setting goals to have purchasing power to handle a down payment, even if that timeframe has been pushed.