The lost generation and merging of credit bubbles – College graduates go into massive debt and enter a low wage job market. Median starting salary for the class of 2010 is $27,000. Student loan debt soaring while wages decline and delay a generation from buying homes.

Dr. Housing Bubble reports:

The student loan problem connects very closely to the future success or issues housing will face in the next decade. A large part of the housing machine is based on stable and predictable home price appreciation over long periods of time. This equilibrium is broken thanks to the recent housing bubble but also many younger professionals are now carrying student loan burdens that sometimes rival the size of a mortgage. This is unprecedented in history but we seem to be saying this often during this decade of incredible debt bubbles. The stories of boomerang college graduates heading back home unable to find jobs is now somewhat known by most since the Great Recession started. What is under reported however is that each subsequent class of college graduates is producing a new class of worker that is in massive amounts of debt because of their education and will need to put off buying a home. Debt is debt and ultimately student loan debt is crushing many young professionals. The fact that many are unable to reap the rewards of their education in the job market is sending repercussions deep into the housing market especially the new home buyer segment. The data on recent college graduates is rather sobering.

Something to think about.