Although home prices continue rising, one degree stands above the rest as being the best for those who wish to buy at home closer to the start of their career.
Of the top 26 degrees that would allow graduates to purchase a home in four years, 22 of them involve engineering, a study from Realtor.com shows. The top degree enables buyers to purchase a home within 2.5 years of graduation.
“When it comes to homeownership, degrees in engineering really pay off,” realtor.com Senior Economist Joe Kirchner said. “While this analysis leverages averages and assumptions, it shows just how powerful a high starting salary can be when it comes to early home ownership.”
On the opposite end of the spectrum, education degrees have the longest path to homeownership with an average of seven years.
“Our analysis also underscores the importance of consistently saving, especially if you aren’t making a high starting salary,” Kirchner said. “While seven years may sound like a long time, putting away 20% each month could have education professionals in a home by their late twenties or early thirties.”
The analysis measures how long it would take to save for 20% down payment on a $250,000 home, based on the average starting salary by degree as reported by Payscale.com and saving 20% of one's income per year. Of course, there are many down payment options that are much lower than 20%. Many companies offer 3% or even 1% down payment programs.
Here are the top 10 degrees that provide the fastest path to homeownership:
10. Electrical Engineer
Starting Salary: $67,000
Savings per year: $13,400
Years: 3.7
9. Electronics and Communications Engineering
Starting Salary: $68,000
Savings per year: $13,600
Years: 3.7
8. Electrical and Computer Engineering
Starting Salary: $68,100
Savings per year: $13,620
Years: 3.7
7. Nuclear Engineering
Starting Salary: $68,500
Savings per year: $13,700
Years: 3.6
6. Computer Engineering
Starting Salary: $69,600
Savings per year: $13,920
Years: 3.6
5. Chemical Engineering
Starting Salary: $69,800
Savings per year: $13,960
Years: 3.6
4. Mining Engineering
Starting Salary: $70,200
Savings per year: $14,040
Years: 3.6
3. Computer Science and Engineering
Starting Salary: $71,200
Savings per year: $14,240
Years: 3.5
2. Physician Assistant Studies
Starting Salary: $85,200
Savings per year: $17,040
Years: 2.9
1. Petroleum Engineering
Starting Salary: $96,700
Savings per year: $19,340
Years: 2.6
