Dr. Housing Bubble — The brewing bubble in higher education

There is high-quality evidence suggesting that higher education is deep in a bubble.  When I examine the weakness in the housing market I also think of the massive expansion of debt with student loans.  The biggest expansion in student debt occurred in a decade where household incomes stalled out.  Many of the recent graduates are struggling to find good paying work so it has become much tougher for these young professionals to purchase homes.  It becomes even more difficult if they live in a state like California where housing is still showing hints of a bubble in many markets.  I get e-mails from young families looking to buy but their incomes simply cannot afford prices in mid-tier markets, at least where prices stand today.  They are saddled with debt not seen in previous generations and they are more reluctant to jump into a massive mortgage payment.  There is little sign that the bubble in higher education is slowing down and we have some new perspectives on the data.

Read it at Dr. Housing Bubble
The brewing bubble in higher education – in 2000 student debt made up 3 percent of all household debt. Today it has doubled to 7.5 percent and has grown by 511 percent in the last decade.

by Dr. Housing Bubble