The National Association of Home Builders’ “Eye On Housing” highlights a recent study that demonstrates a link between home price gains – and homeownership in general – and the educational attainment and future earnings of children.
The results of the study, recently published by economists at the Federal Reserve Bank of Boston, indicates that homeowning parents are better able to invest in the education of their children. When the homeowners’ children are 17 years-old, a 1 percentage point increase of their parents’ area home prices yields approximately 0.9% higher average annual earnings later in life and 1.5% lower average annual income for renters’ children.
The research also indicates that home price growth when children are aged 17 increases higher education enrollment rates at age 19.
