About The Real Estate Group

The Real Estate Group (TREG) "Partners in Excellence"

The mission of The Real Estate Group, LLC is to be Hampton Roads finest provider of real estate services. Our goal is to create a company that provides absolutely the best service for our customers by fostering an environment of teamwork and a common vision. The Real Estate Group, LLC consists of an accomplished team of skilled professionals who take pride in their work and their company. We work hard to go beyond the expectations of our customers, agents, and employees.

Education’s Influential Role in Home Purchase Decisions

The progression of homeownership across the U.S. is declining and educational attainment is a leading factor in the direction of these numbers.

First American Financial Corporation’s Homeownership Progress Index released Thursday determined that the falling homeownership progress in the U.S. shares a special correlation with education levels of consumers.

According to the report, the index declined 1.8 percent year-over-year, and is down 7.6 percent from the peak in 2005. In addition, the index is currently just 0.4 percent above the 25-year low point set in 1995.

“Homeownership’s year-over-year decline in 2015 is no longer a story of economics and a housing crisis correcting the excesses of the mid-aughts. Tectonic demographic shifts taking place as the economy transitions from Baby Boomers to Millennials are causing homeownership rates to transition, too,” said Mark Fleming,

Chief Economist at First American. “Increasing educational attainment levels will improve the prospect of achieving the American Dream in the long-run, but the timing of important lifestyle decisions will have significant impact on homeownership in the near term.”

According to the report, people with higher education levels are more likely to earn higher incomes and own homes. First American ultimately determined that educational attainment and income level are key to homeownership.

Households in which at least one member has a bachelor’s degree has increased 24 percent since 1991, and is expected to increase further as millennials graduate from college and enter the workforce, the report said. In 1990, the difference in homeownership rates among those without a high school degree versus those with a bachelor’s degree or higher was 15 percent.

In 2015, however, educational homeownership gap has almost doubled to 28 percent. In addition, there is a 40 percent difference in the homeownership rate between those in the lowest income bracket versus those in the highest.

For the complete article, including links, head over to themreport.com or CLICK HERE.

About The Real Estate Group

The Real Estate Group (TREG) "Partners in Excellence"

The mission of The Real Estate Group, LLC is to be Hampton Roads finest provider of real estate services. Our goal is to create a company that provides absolutely the best service for our customers by fostering an environment of teamwork and a common vision. The Real Estate Group, LLC consists of an accomplished team of skilled professionals who take pride in their work and their company. We work hard to go beyond the expectations of our customers, agents, and employees.