In the News – U.S. Homeownership Rate Declining Steadily Across All Education Levels
Homeownership has been tough for those who didn’t attend college — and those who do have their degrees.
Redfin found that since 2005, homeownership declined at roughly the same rate for people who received a Bachelor’s degree or higher (from 76 percent to 71 percent), and those who didn’t graduate high school (55 percent to 48 percent). The overall homeownership rate stands at 63 percent.
One possible explanation could be student loans, which create an extra monthly payment that trims leverage off a home loan application. Even though the some-college group makes more money than the high school graduates, the average monthly payoff of $242 for student loans cuts $57,000 off of the top of a home loan, and this moves a whole basket of homes out of reach.
The gap between education levels is the most extreme in places like Frisco, Texas (where 83 percent of degree holders own, compared to 35 percent of people without high school diplomas), Cary, N.C., and Bellevue, Wash. In Spring Valley, Nev., a larger percentage of the least educated own houses.
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