In a striking shift within the real estate market, single women are increasingly taking the lead in home ownership, defying traditional norms and financial challenges. Historical data from the National Association of Realtors (NAR) reveals that the landscape of homebuyers has significantly transformed since 1981. At that time, a dominant 73% of homebuyers were married couples, while a mere 11% were single women. Fast forward to today, and a notable change emerges: only 62% of buyers are married couples, with single women purchasing 20% of homes, and single men lagging behind at just 8%. Especially among first-time homebuyers, single women are making a remarkable mark, accounting for 24% of this group, showing a strong inclination towards securing a personal stake in the housing market.
Dr. Jessica Lautz, Deputy Chief Economist and Vice President of Research at NAR, emphasizes the growing segment of single women homebuyers as an enduring market trend. She notes that despite commonly earning lower household incomes and navigating a tough housing market, single women demonstrate a tenacious pursuit of homeownership. This determination is underpinned by significant societal shifts, such as a decline in marriage rates and a higher propensity for single women to have children living with them. These factors, coupled with a desire for stability encompassing fixed living costs and reliable schooling for children, fuel single women’s homeownership goals, despite the historical barriers that once limited their access to mortgages without a male co-signer before 1974.
The journey towards homeownership for single women is laden with notable challenges, including a persistent gender income gap and the pressure of balancing family responsibilities. Recent research from NAR highlights the economic disparity, showing that the typical single male first-time homebuyer earns significantly more than his female counterpart. This income difference, coupled with the reality of soaring home prices, scant inventory, and additional financial burdens like childcare and student loan debts, makes the path to purchasing a home exceptionally demanding for single women. Yet, their resolve to overcome these obstacles is evident, with many reducing personal expenditure, taking on additional jobs, and prioritizing saving for home investments over other expenditures, underscoring their commitment to homeownership as a primary goal.
The types of homes single women are investing in further underscore their preferences and life situations. Most opt for previously-owned detached single-family homes, reflecting a desire for space and stability, especially for those with children. Choosing neighborhoods based on quality, proximity to loved ones, and affordability showcases their practical approach towards creating a conducive living environment. The longevity of their investment is also significant, with many expecting to stay in their homes for a median of 15 years, and a quarter viewing their purchase as their ‘forever home’. This trend not only reflects the evolving dynamics of the real estate market but also highlights the changing socio-economic landscape, where single women are increasingly establishing independence and securing their futures through homeownership.
As single women continue to carve out a substantial niche in the housing market, their resilience and strategic planning shine a light on a broader shift towards inclusivity and diversity in home ownership. This rising trend not only affirms the financial and social autonomy of single women but also signals a transformative era in the real estate industry, where personal milestones are celebrated irrespective of marital status, fostering a more inclusive and dynamic market landscape for all potential homebuyers.
