Women In Homeownership: Trends Shaping the Next Decade
Over the past few decades, single women have increasingly become a significant force in the housing market. According to the National Association of REALTORS® (NAR), single women accounted for 19% of home purchases in 2024, surpassing single men, who made up just 8% of buyers.
This trend is expected to continue over the next decade, with women playing an even more prominent role in homeownership.
Factors Driving the Increase in Female Homeownership
Several key factors contribute to the rising number of women purchasing homes:
Financial Independence: More women are achieving higher levels of education and securing well-paying jobs, leading to greater financial independence. This economic empowerment enables them to invest in real estate without relying on a partner.
Delayed Marriage: Many women are choosing to marry later in life or remain single, prompting them to establish their own households. This shift in societal norms has led to an increase in single women purchasing homes.
Precedent: Women who are not married have purchased more homes than single men since the 1980s! This said, women weren’t able to get a mortgage without a male co-signer until 1974.
Challenges Faced by Female Homebuyers
Despite these positive trends, women still encounter specific challenges in the housing market:
Higher Purchase Prices and Lower Returns: Research indicates that single women often pay about 2% more when buying homes and sell for 2% less compared to single men. This discrepancy can result in significant financial disparities over time.
Financing Obstacles: Women may face challenges in securing favorable mortgage terms due to factors such as lower average incomes and higher debt-to-income ratios. These financial hurdles can lead to higher interest rates and less advantageous loan conditions.
The Future Outlook
Looking ahead, several trends suggest that women's influence in the housing market will continue to grow:
Increased Wealth Among Women: By 2030, women are projected to control a significant portion of wealth, particularly as they inherit assets from baby boomers. This financial power is expected to translate into more real estate investments by women.
Rise of Single, Professional Women: The number of single women with no children (often referred to as SINKs) is on the rise. This demographic is increasingly investing in real estate, driven by the desire for stability and long-term investment.
Growing Presence in Luxury Real Estate: Affluent women are becoming more prominent in the luxury real estate market. Data shows that women with a net worth of $5 million or more now own 15.2% of high-priced residential properties, a trend that is expected to continue.
Conclusion
As societal norms continue to evolve and women gain greater financial independence, their impact on the housing market is set to expand. While challenges remain, the future looks promising for female homebuyers, with trends indicating increased ownership and influence in the real estate sector over the next decade.