Women are Purchasing Homes at a Faster Rate than Men
Women in discussion. Home Purchasing for Women Rose in 2021 to one of the highest levels in U.S. History.
According to the National Association of Realtors, Profile of Homebuyers and Sellers 2021, 19% of all purchases from July 2020 to June 2021 were completed by single females compared to 9% of single men. (1) This is important.
Women are purchasing more on their own more than every before in the history of home buying in the United States although their income remains at 84% of their male counterparts. This figure does not accurately represent Women of Color. Although according to Pew Research, the pay gap is narrowing among younger generations. (2)
Home Purchases for Women are Important to their Financial Future
Equity
Core logic reports that the average home equity increase between Q3 2020 and Q3 2021 gained $57,000.3 Equity allows female homeowners to refinance with cash out or apply for a 2nd home equity line of credit/loan. (3) These funds can be used for home improvement, maintenance and repairs, college tuition for self or child, and to purchase an investment property or a second home. For some women, a side hussle or small business may receive the boost it needs with equity funds. Women can invest in their own companies, businesses and causes. 81% of sellers identify as women on Etsy, 97% of Etsy creative business owners work from home, and 41% use funds from their business to cover household expenses.(4)
Multi-Generational Wealth Building
Purchasing a home, a second home, and/or investment properties assists women in building multi-generational wealth to pass on to their children, family members, and donations to causes, and charities they support. Multi-generational wealth can assist in affording college tuition for a child, and future financial planning for women that on average make less than their male colleagues. Women may need to use funds from their homes to support their future retirement.
Savings
No matter the real estate cycle when women purchase a home, a portion of the mortgage payment is placed towards principal. The payment in part is being used to pay down the principal balance which will later result in equity that may be available to cash out in a refinance, sale, or transfer of funds to a step up property or downsizing in the future.
Increasing Women’s Wealth Through Homeownership is Vital to Our Communities
According to The Non-Profit Times a study completed by the Bill and Melinda Gates Foundation, "All in for Women and Girls”, reported women are more likely to give to women’s and girls’ causes. Women believe that investing in women and girls leads to real and lasting change in communities. (5)
References
1. National Association of Realtors Annual Report. 2021, HBS Final Report.
2. Barroso, Amanda and Anna Brown. Gender Pay Gap in the US held steady in 2020, https://www.pewresearch.org/fact-tank/2021/05/25/gender-pay-gap-facts/
3. CoreLogic. Economic Team. Home Equity Insights, 2021. https://www.corelogic.com/intelligence/homeowner-equity-insights/
4. Mozen, Chelsea. May 6, 2021. Etsy. New Data Shows Etsy’s Role Supporting Creative Entrepreneurs Around the World.
5. The Non-Profit Times. 2019. Female Donors Give More to Women’s and Girls’ Causes. https://www.thenonprofittimes.com/donors/female-donors-give-more-to-womens-girls-causes/
