L.A. Better Than Other Major Metros for Student Debt

Los Angeles is faring better than other major metros when it comes to student debt, according to new research from WalletHub. When analyzing three new reports on student debt and credit card debt, researchers found that Los Angeles is in the top 43% of cities with the least student debt, putting them in the top half of the country. Other major metros, including New York, Washington DC and Chicago, ranked below Los Angeles for student debt.

“L.A. fares better than other major metros, such as D.C., which has a median student loan debt of 45.62% of the average earnings, or New York City, whose median student debt takes up 42.61% of average earnings, Jill Gonzalez, an analyst at WalletHub, tells GlobeSt.com. “The median student loan debt per person in Los Angeles is $17,969, which is 35.73% of the average earnings of the population over 25 with a Bachelor’s Degree. Although that ratio is not ideal, it’s better than many other similar-sized cities.”

For commercial real estate players, this means that Los Angeles recent college graduates potentially have a larger disposable income that those in other major metros. The research also found that the average income for a Los Angeles resident over 25 with a Bachelor’s Degree is $50,290. “Student loan debt can affect the amount of money people have available for rent payments, directly influencing the profits of CRE investors,” says Gonzalez. “The larger the student debt is, the more earnings are directed towards paying it, leaving less income available for rent and car payments.”