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Bachelor Graduates Most Likely to be Homeowners, Regardless of Student Debt

- Jesamine D.


A 2017 study by the Liberty Street Economics broke down the annual statistics of homeowners and student homeowners across the nation. The in-depth study contained several graphs to help portray the Federal Reserve Bank of New York’s statistical findings. The study was held in accordance with the nation’s major decline in true average earnings for those without a college degree.


In this study, Liberty Street Economics surveyed individuals born in between 1980 to 1986. They tracked college attendance entry at age 26 and identified student debt borrowers from ages 27 to 30. Homeownership here was defined as having a mortgage before 30 years of age.


To begin, the study introduces its findings by showing how college students who previously incurred debt in the past had purchased homes at the same rate as those who were the same age, as well as with those who never went to (or graduated) college. With that key factor in play, the study further displayed its findings of homeowners who never went to college in comparison with their peers of the same age who graduated. This statistical find confirmed that the study’s initial findings of the no-college degree class fell behind (around) 25 points below the initial number of homeowners who had no previous debt and graduated with a Bachelor’s degree.


Bachelor Graduates More Likely to Be Homeowners

Among the study, different lines were used to identify each students’ characteristics. The study then showcased a graph which displays the outcome of those who are age 33 and have not graduated college, in comparison to those who did attend college and didn’t graduate.



College Graduates More Likely to Own Homes


By looking through the graphs, we have the idea that those who graduated college are more likely to buy a home faster than those their age who haven’t graduated, regardless of their student debt. The next chart displayed in this study provides a comparison between student’s debt situations and the amount of home-ownership involving said students. Here, researchers found that those at the age of 30 who didn’t graduate college, fell behind more than 20 points below the average percentage of homeowners who graduated, even with debt.



High Student Debt Associates with Homeownership


A comparison between lower and wealthier working classes revealed that at the age of 33, the average mortgage balance for those who graduated college in lower income areas were involved in mortgages for as low as $150,000 and as high as $200,000. For those who didn’t attend or graduate college, the New York bank’s study found that these individuals were involved with mortgages ranging from an average of $130,000 to an increasing $190,000, coming from higher-income areas.


Overall, the study found that homeownership is positively associated with educational attainment – in terms of degrees pursued, as well as earned.


While the numbers in this 2017 study provide enough data to show that college-goers are more likely to become a homeowner, the fact of the matter is that anyone, anywhere, can become a homeowner. The statistic of those who didn’t graduate and own homes, is still a representing number of outstanding, hardworking and proud homeowners.

Jesamine D.


Jesamine De Guzman

DRE 02066320

Berkshire Hathaway
Home Services Southern California

540 South Lake Avenue,

Pasadena, CA 91101

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Call: (213) 817-2111

Email: jesamine@realtorjes.com

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