Student Loan Debt Impacting Home Ownership Rates of Blacks More So Than for Whites

Researchers at Dartmouth College in New Hampshire and the University of Wisconsin find in a new study that student loan debt has had a greater impact on Blacks than Whites on the ability to afford a home. The authors found that having $10,000 or more in student loan debt resulted in a 6 percent lower probability of owning a home. For Blacks with student loan debt, there is a 11 percent lower probability of home ownership. For Whites with student loan debt there is “no discernible association” between debt and home ownership.

The research found that young Blacks overall had a very low rate of home ownership due to a wide wealth gap between the races. Student loan debt may be compounding the problem for Blacks with a college education. The authors conclude that “student loan debt could contribute to Black-White inequalities in wealth in the 21st century, at least among the college educated.

The study, “Is Student Loan Debt Discouraging Home Buying Among Young Adults?” was presented at the annual meeting of the Association for Public Policy Analysis and Management. It may be downloaded by clicking here.


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