Often, graduation from college is portrayed as a time of celebration, new opportunities, and accomplishment. For many, it marks the end of years of hard work and the beginning of an exciting new chapter.
Graduation, however, does not always bring the joy and anticipation that society expects. While some may gladly embrace the move to maturity, others face uncertainty, pressure, and unforeseen hurdles.
For Breeze Smith, a graduating senior from Claflin University, her post-grad plans are more focused on the cost of living. Affordable housing is a top priority for her when doing research to find a place to live.
“Housing will likely be harder for many to find. I do believe tax cuts will disproportionately affect [historically Black college and university] students, since racism already plays a major factor in how affordable housing is,” said Smith.
In 2024, the cost of living in the United States increased in certain areas around the country, posing a challenge for recent college graduates seeking employment and housing in cities with high living expenses.
Many in higher education circles worry what the future of the housing market will look like for graduating HBCU students with a new presidential administration set to take office next month.
“From a higher education perspective, we have seen the impact of student loan debt, coupled with employment challenges, eliminating Black housing opportunities,” the Thurgood Marshall College Fund said in a statement.
TMCF believes underserved communities are even more affected by a challenging housing market, further widening the wealth gap in this country between races.
In recent years, that gap has grown wider due to higher unemployment and lower wages for Black people in comparison to white people, regardless of their educational attainment or age. As of October 2024, the unemployment rate in the United States for Black Americans was 5.7%, compared to 3.8% for white Americans, according to the U.S. Bureau of Labor Statistics.
With the Trump administration’s talk of deregulation and tax cuts, HBCU graduates will likely face new economic challenges, particularly in the employment and housing markets. In spite of this, by adapting new lifestyle choices to economic conditions and finding suitable job opportunities, students can adapt to ever changing economic conditions and find suitable employment and housing.
“The president-elect has some policies that are going to increase the cost of buying homes. He’s planning to implement some tax policies that will actually increase the federal debt”, said Jessica Fulton, vice president of policy at the Joint Center for Political and Economic Studies.
We increase interest rates on things like mortgages on homes when we increase the federal debt, Fulton said. She suggested discussing affordable housing policies and engaging in budget processes with local government housing agencies and organizations like the National Fair Housing Alliance.
“Reach out to the local government housing agencies and ask them what policies they have,” she said. “I think it is pretty impressive in this political climate around which policies are important to enact in terms of increasing affordable housing supply.”
Kenneth Whaley, a professor at the University of South Florida discussed various aspects of real estate investment and financial planning for young graduates. Through investment properties in more affordable areas, Whaley spoke about how building an asset portfolio can later be leveraged when buying a personal home.
“You’re gonna have to think about real estate as an asset and an investment,” he said.
Whaley recommends exploring different ways to gain insight into the real estate and employment markets. He cautioned against falling victim to the “hustle trap” of constantly working multiple jobs. In order for a student to achieve their desired lifestyle, they should focus on being flexible and balancing earnings with their career goals, he said.