N.Y. Fed Report Links Tuition Hikes to Homeownership Declines – NMP Skip to main content

N.Y. Fed Report Links Tuition Hikes to Homeownership Declines

Jul 19, 2017
New research from the Federal Reserve Bank of New York has linked the increase in college tuition and student debt to the decline of homeownership among young Americans

New research from the Federal Reserve Bank of New York has linked the increase in college tuition and student debt to the decline of homeownership among young Americans.
 
According to a Bloomberg analysis of the Fed’s report, up to 35 percent of the decline in young American homeownership from 2007 to 2015 has its roots in student debt loads, which doubled since 2009 to more than $1.4 trillion. The Fed speculated that if tuition stayed at 2001 levels, the approximately 360,000 additional young adults would have been homeowners in 2015. The research contradicts adamant claims by Obama White House economists and academics who insisted the connection was minimal or even nonexistent.
 
"States that increase the cost of education therefore may pay a price not in the form of declining workforce skill, but instead through muted housing-related spending and lower wealth accumulation among younger consumers in the years to come," the New York Fed paper said.

 
About the author
Published
Jul 19, 2017
Strong Jobs Report Threatens Mortgage Rate Rally

October hiring more than doubled expectations, pushing Treasury yields higher

Nov 06, 2026
Fed Holds Rates, But Pricing Pressures Persist

Rising Treasury yields and fresh inflation data complicate rate locks, borrower qualification, and lender margins as markets anticipate another hike in December

Oct 29, 2026
Zippy Adds Capital For Manufactured-Home Lending Push

The $20 million investment from Saluda Grade will support expansion beyond 27 states and new loan products across wholesale, retail, and community channels

Oct 16, 2026
Inflation Hits 3.7%, Putting Mortgage Rate Relief At Risk

September’s inflation pickup puts recent rate improvements at risk, potentially eroding affordability gains from lower home prices and seller concessions

Oct 14, 2026
PLACE Acquires Ardley, Expanding Push To Turn Existing Borrowers Into New Loans

The latest deal connects borrower retention technology with Maxwell's origination platform and PLACE's real estate network, creating new opportunities for lenders

Oct 09, 2026
Equifax, TransUnion Launch New Tools To Cut Credit Report Costs

Both bureaus introduce ways to purchase credit scores separately from reports, while Equifax reports growing VantageScore adoption and extends $1 pricing through 2028

Oct 09, 2026