Do Expensive Homes Make for Wealthy Kids?
It seems like common sense: Children from wealthier families tend to do better, while children from poorer families have a tougher time climbing the ladder. Today comes one piece of evidence showing exactly how precarious that ladder climb can be for families of modest means.
A new study from the Pew Charitable Trusts' Economic Mobility Project shows a correlation between the housing boom and education gains for students from low- and middle-income families. For prospective students from families making less than $70,000 per year, an increase in housing value immediately prior to college might mean more educational success. For every $10,000 gain in such a family's home equity, the likelihood of enrolling in college increased by 6 percent. In addition, the housing boom made these students 24 percent more likely to choose their states' four-year public flagship schools and 17 percent less likely to choose community colleges, and also 9 percent more likely to graduate from college.
Read the full article at usnews.com.
- Economic Mobility Project