Rootliep, Sjoerd (2024) Homeownership and student debt: exploring the impact of student debt on homeownership in the Netherlands. Master thesis.
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Abstract
Rising student loan debt has been shown in recent literature to have a negative impact on homeownership rates, especially for young adults. This study focuses on the relationship between student debt and homeownership in the Netherlands. Utilizing data from the DNB Household Survey (DHS) with 6,824 observations over the period 2002-2022, this study uses logistic regression models to assess how student debt presence, high debt levels, and accrued debt influence the likelihood of homeownership. The key independent variables are a binary student debt indicator, a binary indicator of high student debt, and the logarithm of accrued student debt. The results show that student loan debt has a substantial negative effect on homeownership. Individuals with student debt are significantly less likely to become homeowners, and the negative impact becomes more pronounced for those with higher debt levels. Life course events such as living together with a partner, obtaining a college degree, and having children remain key predictors of homeownership. These findings contribute to the academic literature by providing empirical evidence of student debt's impact on homeownership within the Dutch context, given the previous literature's focus on the U.S. context. This illustrates the need to take institutional and economic variations into account when analyzing how student loans affect various housing markets. These findings highlight the necessity for policy measures to mitigate the financial strain of student loans and enhance homeownership opportunities for young graduates.
| Item Type: | Thesis (Master) |
|---|---|
| Degree programme: | Real Estate Studies |
| Supervisor: | Liu, X. |
| Date Deposited: | 08 Jul 2024 12:17 |
| Last Modified: | 08 Jul 2024 12:17 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/4565 |
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