Phoenix, Arizona (CNNMoney) Home buyers from Phoenix are more likely to have a student loan debt than those in other parts of the state.
The number of new home loans for students in Phoenix rose 17% in the fourth quarter of this year, compared to the previous year, according to data from Mortgage Bankers Association.
That’s compared to a 15% increase in the national average, the organization says.
“Phoenix’s young population and growing wealth will continue to push up home prices in the coming years,” said John K. Turecki, a managing partner at Mortgage Banker’s Association.
“And as house prices rise, many people who want to live in the Phoenix area may need to consolidate their finances.”
The housing market has been on the rebound, according the data, and there’s been a noticeable uptick in the number of people applying for mortgages, especially for those with student loans.
The median price of a home in Phoenix, according data from the Realtor.com website, jumped by 6.6% last year to $1.7 million.
Phoenix has also seen a surge in the numbers of people who are buying a home for the first time in the last year.
Homebuyers from Phoenix made up 26% of the city’s new home buyers last year, up from 20% in 2015, according Realtoria.com.
Many of the homebuyer demographics are also changing as the Phoenix housing market booms.
The Phoenix area is becoming increasingly diverse as the population ages.
Nearly half of Phoenix residents are non-Hispanic white, while the rest are African American, Latino or Asian, according figures from the Arizona Republic.
The region also has seen an increase in Asian-American households.
About 40% of Hispanics in Phoenix live in a household headed by someone of Asian descent, according a 2015 Census survey.
The population of Latinos in Phoenix also grew by about 15% in 2017, from 15,829 to 16,869, according census data.
In the city, Latinos are the largest ethnic group, with an average of 4.5% of all residents, Census data show.
Latinos are also more likely than whites to have lived in Phoenix for less than 10 years, and they have an average household income of $47,800, the same as whites, according Census data.
The housing price growth is making it harder for middle-class families to buy homes in the city.
For instance, in the first quarter of 2018, Phoenix had the highest number of foreclosed homes in Arizona, with more than 3,400.
The homeowners are getting out of the housing market.
For every one new home sold, more than three of them were foreclosed on.
The problem is not limited to the city of Phoenix.
According to the Mortgage Bank, Phoenix has the highest foreclosure rate in the state for any metro area, with 8.2% of homes that are foreclosed in the county.
For the last 10 years alone, the city has seen a total of 2,664 foreclosures, which is nearly twice the rate of the national rate.
The average monthly payment for a new home in Arizona is $1,200, but the median payment is just $1 in the metro area.
Phoenix’s median home price has been going up faster than the national median since 2014.
The average price of the median home in the metropolitan Phoenix area has increased by 12% from the previous 12 months, according mortgage bank data.