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Can Education Predict Whether You'll Own A Home?

When choosing a place to live, you also have to choose whether you're going to rent or buy. Of course, there are a number of reasons you might choose one over the other. For most of us, though, the decision will largely be financial. Buying a home requires a significant upfront investment and you need to have enough to cover a down payment, closing costs, etc., before you can buy. That may help explain a new analysis that found education level is a good predictor of whether or not a person will own a home. According to the data, among U.S. homeowners, 40 percent have attained a bachelor's degree or higher and 30 percent have some college or an associate's degree. By comparison, 23 percent of homeowners have a high school diploma and 7 percent have less than a high school education. That means the vast majority of homeowners have, at least, some higher education. But since the average income for a college graduate is more than twice that of those with a high school diploma or less, it seems income may ultimately be the best predictor of future homeownership.