Women Are Making It a Priority to Invest in Real Estate!
Updated: Apr 25, 2023
Did you know that despite earning less than men, single women own millions more homes than single men? LendingTree's recent analysis of 2021 Census data reveals that single women own around 10.7 million homes, while single men own 8.1 million homes. This statistic is surprising given the historical financial hurdles women have faced.
On average, women earn 83 cents for every dollar men make. Homeownership is one of the most effective methods of building personal wealth, and a typical homeowner who purchased their home in 2011 accumulated an average of $225,000 in housing wealth by 2021. This gender gap exists in almost every state in the U.S.
The reasons for women's unequal homeownership vary by age group.
Longer life expectancies are a factor for older women, with homeownership shifting from male to female when the couple previously owned a home. When women outlive their male partners and owned a house together, the ownership usually shifts to the surviving female partner. Women tend to live longer than men, with an average life expectancy of 81 compared to 76 for men.
Younger women, approaching the peak of their careers, earn salaries almost equal to men their age. They are well aware of the wage and wealth gap between genders, and buying a home is one way they try to counter it.
On the other hand, for younger women, owning a home is a way to combat the wage and wealth gap that still exists between genders. Dowell Myers, a housing expert at the University of Southern California, explains that as women approach the peak of their careers, they earn salaries comparable to men their age. Owning a home is a significant investment for them and means more than just financial stability.
According to LendingTree, the pandemic homebuying frenzy's full effect on the gender gap in homeownership isn't clear, as the most recent Census data available is from 2021. A vast majority of owner-occupied homes in the U.S. belong to couples. Women dominate ownership in what's left over, particularly in Southern states with cheaper home prices, making it easier for a single income to handle mortgage payments.
For many young women purchasing a home is a long-term investment that provides additional motivation to build wealth.
Renters pay month after month without any equity; the only thing they have to show for it is receipts. Therefore, owning a home is a wise investment that helps women accumulate wealth and secure their financial future.