According to the Homeownership Progress Index published by the First American Financial Corporation, there is a direct correlation between education and homeownership. The study shows that homeownership has declined since 2005, when it hit its peak, and is now just above its 25-year low mark by only 0.4 percent. These figures can be connected directly to statistics related to education, because those who hold a bachelor’s degree are more likely to have higher paying jobs, which usually translates into being better able to afford a mortgage.
The number of individuals graduating from college has increased since the early 1990s. There are now 24 percent more households comprised of at least one person with a bachelor’s degree, and experts anticipate that number will increase as more millennials complete their education. Looking at education in connection with homeowners illuminates a major gap between those with only a high school diploma and those who have graduated college. In 1990, 15 percent more of those with a college degree owned homes. By 2015, that gap had increased, with 28 percent more college graduates owning homes than high school graduates.
Analyzing markets that have higher educational rates also shows a correlation, as more people in those areas tend to own homes. As the educational gap widens and forces the income gap to increase, those who do not have a college education may find that they simply cannot afford to own their own home.
Moneytips can help you refinance your existing home loan.