On paper, today’s young adults are better positioned to buy than those of an earlier generation. Affordability for entry-level buyers is more than twice as high, according to an index composed by the NAR using such data as interest rates, median income, and price. Mortgage payments as a share of income are half what they were in 1984, and unemployment among 25- to 34-year-olds is lower.
Yet student debt has more than tripled in 10 years, and laws passed since the financial crisis make it harder to get a mortgage. While most mortgage borrowers have an average credit score of 740, most young adults score below 700, according to credit tracker FICO.