Having that College Degree is an Advantage when it comes to Owning a Home

Filed under: Market Comentary

college degreeA recent article in the National Mortgage News by Jacob Passy brings to light how being well-educated today has never been more vital when it comes to being a homeowner.

According to Passy, First American Financial Corp issued a report citing the difference in home ownership between those lacking a high school diploma and those with a bachelor’s degree or more is widening. Last year, the gap was 28%, nearly twice the 15% gap that was reported back in 1990.

First American Financial Corp chief economist Mark Fleming said in a press release last week, “People with high education levels are more likely to earn higher incomes, and thus more likely to own homes. The good news is that educational attainment levels are improving nationally, so we are on the right track.”

Passy’s article explains that education levels are rising as more millennials are receiving college degrees and entering the workforce. And, these millennials are actually outpacing baby boomers when it comes to receiving a college education.

In addition, Susan M. Dynarski, an economics professor at the University of Michigan, says that the dividing line between haves and have-nots in home ownership is education, not student debt.

Dynarski says that those without a college education have been “getting hammered for years,” and added, “The college-educated–even those with student debt, are winners in our economy.”

Passy’s article also showed that New Hampshire and Vermont have the highest rates of home ownership, while Idaho experienced the biggest growth in home ownership from 2014 with a 5% increase.

If you have any questions about anything dealing with the mortgage industry, please feel free to give me a call so we can discuss whatever is going on in your mind.

If you have kids in middle or high school and need assistance preparing them for college, consider contacting Tom Meier of Advanced College Solutions.  They have over 15 years of experience helping students prepare for college academically and financially!  Tom can be reached at (800) 344-1508.

Source: http://www.nationalmortgagenews.com/news/origination/the-link-between-education-and-homeownership-deepens-1077428-1.html

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