This post was inspired by the single women who walked through the doors of my last two listings. Encouragingly – especially given the recent political climate, an increasing number of women out there are solo-investing in their own real estate. Here’s a quick peek on the state of women’s real estate ownership.
Women’s property rights throughout history
Looking back through history, it hasn’t been very long since women have had the ability to own property. In fact, it’s estimated that less than 20% of the world’s land is owned by women and there are still many countries that disallow, or limit ownership by females. It’s only been since the early 1900’s that women (married women specifically) had substantial rights over property in the US. Today, roughly 17% of US home buyers are single females and the number is rising.
Importance of Ownership for Women
There is a certain power, freedom and sense of security that comes with owning real estate. When a woman owns a piece of property, she opens herself up to greater bargaining power and financial independence. Additionally, studies show that when a woman owns her own home, it increases stability. In turn, that stability improves overall welfare outcomes for herself and her children. That observation is especially true in cases of divorce or widowhood.
Lingering Inequality
Despite the progress, disparity between single males vs. female homeownership remains. That discrepancy points back to the enduring wage gap. According to a report by the NAR, single women are buying homes later in life and at a lower average price point than men ($173,000 vs. $190,600). Lower value homes also tend to come with more risks (less desirable locations, poorer condition, etc.). Therefore, those homes may be subject to slower appreciation than higher value properties. Slow appreciation in turn hurts women economically, especially if they find themselves in a position where they’re forced to sell.
Those inequalities not only effect the types of homes women can afford, but their ability to compete for those homes – especially in a seller’s market. When reviewing offers of single men vs. single women, I noticed that men usually were able to submit stronger offers. Between the wage gap and gender imbalance in trade work, men consistently win out by offering thousands over asking, or waiving inspection contingencies. Hence, women have to wait longer to reap the benefits that come along with homeownership like stability, equity building, and tax deductions.
Realizing the Dream
Are you a single woman interested in owning your own property, or know someone who is? Below are just a few options available to help achieve that goal.
- FHA Loans – Popular with first time homebuyers, these loans are insured by the Federal Housing Administration. With this backing, FHA loans makes it easier to qualify based on credit. They also allow for lower down payments and reduced closing costs. In some cases, rolling rehab costs into your FHA mortgage is possible.
- VA Loans – For Servicemembers, (active, retired and eligible surviving spouses) the Veteran’s Administration offers loans that require very little or even no down payment. Additionally, they provide special grants to help disabled veterans build or modify homes to meet their needs.
- Multifamily Ownership -Though it may be a bit more work to maintain and manage tenants, owning and renting out a unit or two in a multi-family property is a great way to make mortgage payments more affordable while building equity.