While many studies lament the burden that student debt places on young people seeking to buy their first homes, a new report shows that a college degree is still well worth acquiring when it comes to homeownership.
According to the Federal Reserve Bank of New York, those with a bachelor’s degree and higher are more likely to own a home by age 30. This is true, regardless of how much student debt they have.
“Earlier studies have repeatedly shown that student debt impacts the homeownership rate, so this new information is positive for hopeful would-be homeowners who feel buried under their student loans,” notes Ris Media’s Housecall.
The study looked at those born between 1980 and 1986. It found that “college graduation, measured by highest degree attained, is undoubtedly associated with higher homeownership rates, regardless of debt status.”
It also compared graduates from wealthier areas to those from areas with less average income. While you might expect those from wealthier areas, who likely have greater financial resources, to own homes at a higher rate, the study found that homeownership rates among college attendees are similar for both income groups. “Thus, in terms of homeownership, college appears to be effective in ‘leveling the playing field’ across students from different socioeconomic backgrounds,” notes the study.