How Education Is Shaping Homeownership

CHICAGO — The characteristics of homeowners vary significantly across metropolitan areas, shaped by local economic conditions, housing market trends, and demographics. Understanding how these characteristics influence home buying decisions can provide valuable insights into the unique real estate market of each area. Specifically, this analysis focuses on the education levels of homeowners.

Income and debt levels differ among homeowners based on their education levels. While higher education often leads to higher future income, it can also delay homeownership. According to NAR’s 2024 Profile of Home Buyers and Sellers, 36% of buyers reported student loans as an expense that made saving for a down payment difficult for them.

Homeownership rate variations in metro areas:

According to the U.S. Census Bureau, the national homeownership rate was 65.7% in 2023. Based on NAR calculations, 63% of major metropolitan areas had a homeownership rate higher than the national level for that year.

Among the areas with the highest homeownership rates:

• Florida led the way, with four of the top 10 areas: The Villages, FL (87.8%), Punta Gorda, FL (83.8%), Homosassa Springs, FL (82.2%), and Sebastian-Vero Beach, FL (79.5%).
• In The Villages, FL, the area with the highest homeownership rate that year, 98.0% of householders with a graduate degree were homeowners, while only 50.0% of householders with less than a high school diploma were homeowners.
• Homeownership rates for householders with some college education or a bachelor’s degree were also high: 91.6% and 89.7%, respectively.

Among areas with the lowest homeownership rates:

• The areas with the lowest homeownership rates that year included Los Angeles-Long Beach-Anaheim, CA (48.3%), Lawrence, KS (49.1%), and College Station-Bryan, TX (50.4%).
• In the Los Angeles area, householders with a graduate degree had the highest homeownership rate at 63.2%, while those with less than a high school diploma had the lowest rate, with only 33.5% owning a home.

Homeownership across education levels:

In 2023, the typical American homeowner was 57 years old, had a median income of $92,915, and owned a property with a median value of $340,265.

• The median age of homeowners with only a high school degree or equivalent was 62 years old; their median income was $62,591, and they owned property valued at $245,594.
• The median age of owners with a bachelor’s degree was 53 years old; their median income was $121,360, and they owned property valued at $408,994.
• Homeowners with graduate degrees were slightly older than their counterparts with a bachelor's degree, with a median age of 54. Overall, householders with education levels higher than a bachelor’s degree had the highest median income of $147,681. They also owned the most expensive properties, with a median value of $474,416.

Impact of education on financing decisions:

NAR estimates that 74% of all home buyers financed their purchase, with first-time home buyers being even more likely to do so, at 91%.

• The highest percentage of homeowners who used financing to purchase their home were those with a bachelor’s degree, at 66.1%.
• In contrast, only 42.0% of homeowners with less than a high school diploma used financing for their home purchase.
• 65.1% of homeowners with more than a bachelor’s degree financed their home purchase.

Education levels and mobility rates:

The mobility rate represents the percentage of homeowners who have moved within their county, within their state, or from another state, compared to the total number of homeowners. Homeowners with higher education levels, such as those with a bachelor’s or graduate-level degrees, are more likely to have jobs that require them to relocate for career opportunities. In addition, homeowners with higher incomes possess the financial flexibility to move if needed or desired.

• The highest mobility rate was observed among bachelor’s degree holders, with 6.3% of homeowners in this education category having moved in 2023.
• Homeowners with less than a high school diploma, and those with high school or equivalent education levels, both had a mobility rate of 4.4%.
• Graduate-level homeowners had a mobility rate lower than those with a bachelor’s degree, with 6.1% of homeowners with advanced degrees having moved that year.

Education shapes more than just career paths. It also influences when and how people become homeowners. Those with higher education levels often have higher incomes and greater flexibility to move, but student debt can delay their transition to homeownership. These trends help us understand who the potential buyers are and highlight the connection between education and housing opportunities.

© 2025 National Association of Realtors® (NAR)