Title
Authorizing Philadelphia City Council's "Special Committee on Student Loan Debt" to Investigate the Impact of Student Debt on Achieving First-Time Homeownership in the City of Philadelphia.
Body
WHEREAS, The City of Philadelphia and its citizens traditionally enjoy a high rate of local homeownership. According to Pew Charitable Trusts, citizens of the City of Philadelphia have a much higher homeownership rate than most other older American cities. With a 52.6 percent homeownership rate, the city of Philadelphia is a majority homeowning city; and
WHEREAS, Homeownership provides financial benefits to the homeowner. According to the Federal Reserve's Survey of Consumer Finances, a typical homeowner's net worth was $195,400 while that of a renter was $5,400. Under the right circumstances, homeownership provides a valuable asset to homeowners while creating a clear opportunity for owners to facilitate intergenerational wealth; and
WHEREAS, Homeownership also provides social benefits. According to Forbes Magazine, research found that homeowners are more likely to be involved in community civic engagements, local elections, and volunteer work; have better health outcomes; experience lower crime and lower drug usage; and have children who achieve at higher levels in school; and
WHEREAS, Becoming a first-time homeowner requires significant financial investment by potential homebuyers. A typical potential homebuyer must establish a strong credit score, reduce other debts, save for a down payment and closing costs, and build a savings account in order to get approved for a mortgage; and
WHEREAS, Many Americans struggle with becoming first time homeowners due to high rates of student debt. The Federal Reserve Bank of New York estimates the current student debt outstanding in the United States to be 1.4 trillion with an estimated 44 million borrowers liable for the debt. The report indicates that the average student loan debt per holder nationwide is $...
Click here for full text