Furthering Education Might Increase Homeownership

first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Tagged with: Homeownership Student Loans The Best Markets For Residential Property Investors 2 days ago Subscribe Furthering Education Might Increase Homeownership Demand Propels Home Prices Upward 2 days ago September 14, 2016 1,886 Views Share Save The Best Markets For Residential Property Investors 2 days ago Previous: Attorneys and Servicers Discuss Challenges in Default Servicing Next: Women in Housing is Celebrated for the Fourth Year Related Articles Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Conventional wisdom has long suggested that having a college degree puts people in a better position to buy homes. Well, conventional wisdom got the backing of Fannie Mae Wednesday, when the GSE released the second in a series of studies looking at higher education and housing. What Fannie Mae found was that those with at least a bachelor’s degree are 17.5 percent more likely to be able to buy a home than someone without a high school diploma.The news comes at a time when federal officials are pondering the weight of student loans on young adults.“As student loan debt has mounted and young-adult homeownership rates have fallen over the past decade,” wrote Gary Painter, director of social policy, Sol Price Center for Social Innovation, University of Southern California, “considerable attention has focused on the nexus among student loans, education, and homeownership. Recent analyses suggest that the benefits of attaining a college education outweigh the downsides of student loan debt when it comes to achieving homeownership.”After adjusting the findings of its research for race, age, sex, and marital status in addition to parental resources‒‒surprisingly not as much of a needed factor in homebuying among young and first-time buyers where higher education is concerned‒‒the researchers found that having a bachelor’s or higher degree compared to not having a high school diploma increases noticeably.“Even after introducing additional controls for the child’s current income and [parental resources],” Painter wrote, “the researchers found that homeownership attainment remains 5.4 percentage points higher for those with at least a bachelor’s degree.”The education effect on homeownership is also barely dampened when factoring in parental endowments. This, Fannie Mae reports, “reduces the association between education and homeownership for adult children by less than 2 percent.” Painter said the finding suggests that “the educational boost to homeownership is largely independent of the parental resources that may have helped increase education.”The implication, he said, is that homeownership attainment could be increased through policies that promote higher education and increase human capital.“While it is not completely understood why higher education is associated with higher homeownership,” Painter wrote, “evidence of an education effect that persists net of household income and wealth suggests that additional mechanisms are at work.”He suggested that higher education might entail greater financial fluency, including better understanding of the steps necessary to buy a house and access credit markets. Scott Morgan is a multi-award-winning journalist and editor based out of Texas. During his 11 years as a newspaper journalist, he wrote more than 4,000 published pieces. He’s been recognized for his work since 2001, and his creative writing continues to win acclaim from readers and fellow writers alike. He is also a creative writing teacher and the author of several books, from short fiction to written works about writing. in Daily Dose, Featured, News Home / Daily Dose / Furthering Education Might Increase Homeownership Demand Propels Home Prices Upward 2 days ago Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Scott Morgan Homeownership Student Loans 2016-09-14 Scott Morgan Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more