Education, Home Ownership More Closely Tied

DAILY REAL ESTATE NEWS | TUESDAY, MAY 10, 2016

Americans who are well-educated tend to be home owners — a connection that has been deepening over the last 15 years, a new study reveals.

In 2015, the difference in home ownership between those without a high school degree and those with a bachelor’s degree or more was 28 percent, nearly double the 15 percent gap reported in 1990, according to a new report released by First American Financial Corp.

"People with higher education levels are more likely to earn higher incomes, and thus are more likely to own homes," says Mark Fleming, First American’s chief economist. "The good news is that educational attainment levels are improving nationally, so we are on the right track."

Since 1991, the number of households in which at least one member has a bachelor’s degree has risen by 24 percent. That percentage is expected to continue to rise as millennials graduate from college, outpacing baby boomers when it comes to receiving a college education, the report notes.

“It is no accident that the states and markets with growing educational attainment rates are also often the same places with significant improvements in home ownership levels,” Fleming notes. “Education is, as never before, a key to accessing the dream of eventually owning a home.”

But attaining higher education levels takes time, Fleming says.

“As Americans, young and old, gain the intellectual capital to become more successful in the modern economy, they are also delaying lifestyle decisions, such as getting married and having children,” Fleming adds.

The number of households with married couples fell 0.4 percent year over year in 2015 and has fallen by 12.5 percent over the last quarter century. Since 1991, the number of children per household has plunged 18.7 percent, the study shows.

“Increasing educational attainment levels will improve the prospect of achieving the American dream in the long run, but the timing of important lifestyle decisions will have significant impact on home ownership in the near term,” says Fleming.

Source: First American