On International Women’s Day, Credello explores gender inequality in the housing market
NEW YORK, March 8, 2021 / PRNewswire / – Single women are becoming homeowners at a faster rate than single men (score!), Accounting for 19% of first-time buyers versus 11% of single men1. The median age of these buyers is 33 years old. Great, right?
Millennial women push back men and ascend the throne of real estate royalty. They decide homeownership is worth it, after knowing what it’s like to rent and understanding the perks of owning a home, such as being able to purchase a homeownership. home equity loan for debt consolidation. However, a closer look at the data shows that women ultimately buy homes at higher prices and sell them at lower costs than men (boooo!).
Why Single Women Invest in Homeownership
Women marry and have children later in life, focusing more on their careers. They account for just over half of all salaried jobs in the United States, or 50.04%2. They have the resources to buy real estate and realize that home equity is both a smart investment and a tax benefit. This could explain why single women own about 1.5 million more homes than single men in the 50 largest metropolitan areas in the United States.3
But once you analyze the data, the results for women are much less encouraging. A recent study4 of Yale shows that single women buy a house for 2% more than single men. When mortgages are factored in, assuming 20% down payment and 80% financing, it increases to around 7%. They then sell their homes for 2% less. So what’s the problem ?
5 reasons why women globally lose home ownership
1. Less purchasing power: women are currently earning 81 cents on the dollar compared to men, resulting in less purchasing power when it comes to buying a home. This probably contributes to the fact that single men buy more expensive homes. The median home purchase price for single men is $ 215,000, compared to $ 189,000 for single women1.
2. Houses appreciate more slowly: Houses owned by single women are worth less and, therefore, appreciate more slowly. In addition, a study shows that this gap is widening over time. After 15 years, houses owned by single men were worth 17% more than houses owned by single women5.
3. Women negotiate lower discounts: Yale The study notes that single women enjoy smaller discounts on homes than single men. Women also accept larger discounts on the sale.
The biggest price difference occurs when a woman sells and a man buys. And it seems like there’s a reason they don’t try to play hardball. Research shows that women who negotiate are viewed less favorably than their male counterparts who make deals6.
4. Men take more risks; make improvements: Men are more likely to buy riskier properties than women, which may offer higher returns. Guys are also more likely to invest in home improvements.
5. Men have better market timing: Single men have better market timing than single women. No, men don’t have a crystal ball or a tingling acute sense when the market is hot. One hypothesis from the Yale study is that women face more time constraints on when they can buy and sell because they are more likely to have children / care for dependents.
[1] National Association of Real Estate Agents
[3] Loan tree
[4] Yale University
[5] RealtyTrac
SOURCE Credello