Study ties EDUCATION, REAL ESTATE OWNERSHIP closer than ever

If you want to optimize your chances of owning a home at some point in your life, you’ll at least want to finish high school. If you really want to make sure your odds are good, then you’d better get at least a bachelor’s degree before ending your educational trajectory. According to First American Financial Corp., the difference in home ownership between those without a high school degree and those with a bachelor’s degree was more than 28 percent, nearly double the discrepancy 25 years ago. Fortunately, more people than ever have undergraduate degrees, so the population of educated homeowners has a large pool from which to draw.

“The good news is that educational attainment levels are improving nationals,” said American First chief economist Mark Fleming. He added, “We are on the right track.” Since the original study was published, the number of households that have at least one member with a bachelor’s degree has risen by about 24 percent, and that percentage will likely rise as more and more millennials graduate from college. However, advanced education decisions mean other homeownership-conducive decisions get delayed, as more and more people opt to delay marriage and children. In fact, since 1991, the number of children per household has fallen 18.7 percent.

So where does that leave the housing market for now? Lots of demand, but in some very narrow niches. Fleming said, “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 a significant impact on home ownership in the near term.”

Do you think that homeownership and education are as closely tied as they appear, or are there other factors in play?

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About the Author (Author Profile)

Carole Ellis is editor in chief of the Bryan Ellis Investing Letter. Under Carole’s leadership, the Bryan Ellis Investing Letter has grown to over 700,000 subscribers, making it one of the largest real estate newsletters in the world. Each day, Carole directly impacts the daily thinking and conversations of real estate investors worldwide by providing thought-provoking analysis and commentary on news topics relevant to serious real estate investors.

Carole has a strong background in research and in the management of respected publications. She holds a degree in English Literature from the University of Georgia, and has substantial research experience in plant biology. She is the former editor of and writer for the University of Georgia’s Research Magazine. She’s also the author of hundreds of articles and multiple books and home study courses published under the names of her clients, many of whom are well known, highly respected real estate entrepreneurs as well.

Carole makes her home in Kennesaw, Georgia with her husband Bryan and 4 children.

Comments (2)

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  1. GetMikey says:

    I suspect they have it backwards…home ownership is not due to having higher education, it’s due to having a bigger paycheck and the higher likelihood of being able to qualify for a mortgage in the first place.

    Edward Snowden could have easily afforded to buy a home without even a high school diploma due to his income levels and what he did for a living. Same thing with John McAfee, the creator of McAfee AntiVirus, even though he recently lost everything in his escapades in (and fleeing) Belize. Mark Zuckerberg, Bill Gates, Michael Dell, and even Brad Pitt are doing just fine without a bachelors degree!

    It’s the chicken or the egg argument…which comes first? The home ownership or the income to be able to pay for it? The higher education enables the income which enables the ownership of a home.

  2. mary says:

    “Fortunately, more people than ever have undergraduate degrees, so the population of educated homeowners has a large pool from which to draw.”

    Ja, ja, ja. Jo, jo, jo. laughing so hard, can’t catch my breath… Whoa, let me dry my eyes.

    Wow, that was the biggest laugh I’ve had in years. thanks

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