The 35-year-old announced his decision to retire from football at the end of the season, leaving the Merseyside club that he signed for when he was nine years old.
While Owen believes that Carragher has an interest in coaching, the 33-year-old has insisted that he will not want to travel "too far afield".
"I think he's a home boy and he's got a family, two young children in Bootle in Liverpool," Owen told BBC Radio Five Live. "I'm pretty certain he would love to go into management but I'm not sure he'd want to go too far afield.
"He's capable. He's an encyclopaedia of football. He's certainly got the credentials and I'd hazard a guess he would [like to go into management]."
Carragher has so far racked up 723 appearances for the Reds in all competitions.