Getting a college degree is a strong indicator of future homeownership, according to a new study from First American. Young adults still aspire to own a home, albeit at a later date.
From 1997 to 2017, the gap between the homeownership rate of those with a college degree and those without a high school diploma grew from 11.3 percent to 20.5 percent, says the study. Mark Fleming, chief economist at First American, said in the report, "It is reasonable to expect homeownership rates to grow as Millennials continue to make important decisions, including attaining an education and, later in life, buying a home." Business Insider reports that the homeownership rate for college-educated homeowners has fluctuated since 1997, currently sitting at 68.5 percent.
First American measured "potential homeownership demand" as part of its Homeownership Progress Index, or HPRI. Rather than track how many people own a home, it tracks the change in homeownership over time, accounting for shifts in economic, social, and lifestyle trends to find out the likelihood of homeownership. Fleming said marriage is "strongly correlated" with buying a home, and that the homeownership rate among married couples is a full 30 percentage points higher than it is for non-married people.