But new data suggests that student debt may lead young adults to defer homeownership rather than skip out on it entirely. Moreover, the housing market may face a greater drag in the long run from weaker homeownership among adults that don’t attend college, especially if income prospects don’t improve for those who don’t go.
A series of charts help break down the findings of Federal Reserve economists Alvaro Mezza, Kamila Sommer and Shane Sherlund. They used credit records for a nationally representative sample of adults between ages 29 and 31 between 2004 and 2010.
First, the data reflects other research that has found homeownership rates declined relatively more for adults with student loans than those without student loan debt following the recession. While homeownership rates were still higher for those with student debt, the difference between the two groups declined.
But what if you exclude those who didn’t go to college? The homeownership rates between those who have no college debt and those who have no college debt because they didn’t go to college are far apart, and yet the rates of both declined. In other words, looking at adults without student debt without looking at whether they have college education could tell a different story.
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed
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