Homeownership elusive for young adults without college degrees
NEW YORK – May 24, 2016 – A new report by the rental listing website Apartment List shows that it will take about five years of additional savings for college graduates between the ages of 18 and 34 without student debt to afford a 20 percent downpayment for a starter home, versus 10 years for college grads with student loans and about 15.5 years for those without college degrees.
"It's really everywhere that people without college degrees won't be able to afford homes. They could be stuck renting for a long time," says Andrew Woo, director of data science at Apartment List.
The survey of 31,000 people indicates that those without college degrees fare worse because they tend to have lower incomes and are less likely to receive help with downpayments from friends and family.
College graduates without student debt expect to obtain more than $8,000 in assistance from friends and family, and college graduates with loans expect close to $4,000, versus slightly more than $2,000 for those without a college education.
The survey also reveals that college grads earn about $22,600 more than non-grads but save only about 10 percent of that additional income.
Source: Wall Street Journal (05/23/16) P. A3; Kusisto, Laura
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