There’s a distinct difference between the number of single women vs single men that are buying homes. And while there are many variables that contribute to this trend women are making moves to increase their net worth and create generational wealth, one home purchase at a time.
Although most homes are purchased by married couples – they make up 67% of sold homes each year, a 2016 survey showed that single women were outpacing single in home buying – by almost 10%. Single men made up only about 7 percent, while single women made up a whopping 17 percent. But why exactly is that?
Although there’s still a sizable income gap between men and women overall, more than 18% of female homebuyers listed an increase in their personal income as a reason for buying a home.
There’s an emerging trend that shows that men are falling toward the bottom of the income ladder and that young women are experiencing economic gains that outpace men… substantially. The percentage of young men earning less than $30,000 (based on 2015 numbers) has nearly doubled to more than 40% over the past 40 years. Even more astounding is that the percentage of young women earning more than $60,000 grew from around 2% to 13%.
education seems to be a defining factor
Women’s education accomplishments are outpacing men. We’re much more like to have a college degree or professional certification/designation; and with more marketable skills, we’re also making more money which enables us to make wealth-building investments like purchasing a home.
no longer waiting for marriage
In the past, there was a traditional route that many women followed. We lived at home until married. Then, transitioned to our husband’s home or purchased a home with him before or shortly after marriage. Thankfully, this outdated way of living is a thing of the past. Instead, establishing financial independence, moving into our own home, and forging a good career comes first.
fewer barriers to entry
With renters facing annual rent increases each year, no wonder women are looking for a more financially stable solution. With down payment assistance programs, discount realtors fees, favorable interest rates, and the ability to deduct mortgage loan interest and repair expenses at tax time, single women are weighing the financial upside to being a homeowner over the drawbacks of being a long-term tenant.
More than 35% of single women homebuyers cited being tired of their current residence as a defining factor in deciding to purchase a home. Women are seeking more options and a more enjoyable living experience. Whether it’s the ability to customize the space or do a whole house renovation – we want options. And since rising rent rates equals less house for your dollar, buying a house can also mean a larger home.