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Homeownership among Young Americans: A Look at Student Loan Debt and Behavioral Factors
Author(s) -
Letkiewicz Jodi C.,
Heckman Stuart J.
Publication year - 2017
Publication title -
journal of consumer affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.582
H-Index - 62
eISSN - 1745-6606
pISSN - 0022-0078
DOI - 10.1111/joca.12143
Subject(s) - student loan , debt , national longitudinal surveys , demographic economics , marital status , household debt , student debt , loan , psychology , business , economics , demography , finance , sociology , population
This study uses the National Longitudinal Survey of Youth (1997) to examine the factors that impact homeownership among young adults, with an emphasis on student loan debt. Three key findings arise from the research. First, life cycle and demographic characteristics, such as marital status, education, and income, continue to be strong predictors of homeownership. Married households with a college degree and children are among the most likely to own a home. Second, young adults with student loan debt are no more or less likely to own a home than someone without debt after controlling for a number of factors; however, students who have already paid off their loans are more likely to own a home. Finally, respondents who express a willingness to take risks in finances are more likely to own a home while those who are more conscientious are less likely to own a home.