Iowa home to third-highest income earners who don’t have high school diplomasApril 11, 2022
Iowan homeowners with less than a high school degree recognized the third highest earnings in 2020 compared with those with the same level of education who live in other states, according to a recent Point2 study.
Median earnings that year among these Iowans was $30,147.
North Dakota ($30,834), New Hampshire ($30,578), Colorado ($29,258) and Washington ($29,047) were the others in the top five.
The share of homeowners without a high school degree dropped 30% from 2010 to 2020.
“Overall education levels are rising, but housing is also becoming more expensive, particularly in some markets,” University of Central Oklahoma Barnabas Professor Finance Randal Ice said in the report. “As education is closely correlated to income, the higher the prices get, the more the poorly educated are locked out of the market and forced to rent. Of course, this has other impacts, including less lifetime wealth and more frequent relocations among renters.”
He said it’s likely Americans’ level of education will continue to increase as more high school graduates attend college.
“Moreover, the percentage of the population with a college education will increase as many of those who are passing grew up in a period where a college degree was rare,” he said.
He said people with more education tend to have higher incomes and are more likely to be able to afford to buy a home, and homeownership will increase among those with more education, who can then build wealth and be more financially successful compared with individuals who have less education.
“Surveys also show that those who pursue degrees that are more geographically stable tend to own homes at a higher rate,” he said. “For example, teachers generally stay in one area and buy a home, but those in high-tech fields are more likely to move and more likely to rent. There are also many regional differences to homeownership, and of course, home prices are always a factor, with more expensive markets having higher rental levels.”
From 2010 to 2020, both the portion of Americans who have at least a high school diploma and the portion of homeowners who have at least a high school diploma or GED (27% to 29%) grew.
Homeownership decreased 4% from 2010 to 2020, and more homeowners tend to have higher education.
The state also has among the highest homeownership rates (71%) in the country. Nationally, 64% of homes are owned. Homeownership rates tend to be higher in the East and the Midwest. New York (54%) and California (55%) have the lowest homeownership rates.
Those with degrees in education (82%), industrial/technology (81%) or agriculture (80%) have the highest rates of homeownership nationally.
This article was originally posted on Iowa home to third-highest income earners who don’t have high school diplomas