From College to Homeownership: The Relationship Between Undergraduate Major, Salary, Student Loan Debt, and Homeownership

• In Event: AERA Roundtable Session Friday 7:45 am - Gold 1
  In Roundtable Session: Student Debt: Information, Decision-Making and Outcomes

Abstract

This longitudinal study explores the relationship between major choice and homeownership while accounting for mediating factors salary and student loan debt. Using the College and Beyond II Alumni Survey (2021), we apply Becker’s (1993) human capital theory and conduct logistic regression to a cohort of students (N = 2,286) who graduated during the 2009-2010 academic year, representing a 10-year follow-up period. The findings suggest that higher salaries are associated with a greater likelihood of homeownership. Bachelor’s degree graduates in the arts or humanities have lower rates of homeownership than those in STEM and health majors, a relationship likely mediated by salary. Additionally, results indicate that taking out student loans increases homeownership, whereas higher loan payments reduce homeownership.

Authors

• Roy Y. Chan, Lee University

• Amy Li, Florida International University