Single women want to own homes — here’s why
Single women — especially those without children — don’t necessarily need a bountiful abode with multiple bedrooms and a spacious yard. Many of them believe the ease and flexibility of renting outweigh the benefits of buying a home. Yet homeownership is an increasingly higher priority for many solo females today, research shows.
A new report by First American reveals that, in 2019, the homeownership rate for divorced, separated, widowed and other single women was 2.2% higher than for single men. The homeownership rate for single women jumped from 49% (a 20-year low) in 2016 to nearly 51 percent in 2019. That’s a speedier average annual growth rate than the country’s overall rate. What’s more, Freddie Mac data show that their home-purchase mortgage clients who are single women increased by 30% between 2010 and 2019. And a 2018 Bank of America study reported that single women prioritize homeownership over single males 73% versus 65%, respectively; they’re also ranking owning a home higher than several other significant life goals like getting married (41%) and having kids (31%).
What’s behind these trends? Odeta Kushi, the deputy chief economist at Santa Ana-based First American in Orange
County, cites several factors.
“The interesting finding of this analysis is that single women are increasingly embracing wealth creation through homebuying and choosing to invest in homes, more so than single men,” she says. “Also, educational attainment is another indicator of the likelihood of homeownership, and women have increasingly pursued higher levels of education over the last two decades. That’s resulted in higher incomes.”
Paired with a low mortgage rate environment, increasing house-buying power has resulted in higher homeownership rates for this demographic.
Dabney Baum, financial planner and owner of Baum Wealth Advisors in Boston, says homeownership is now in reach for many women.
“The great hurdle to homeownership had been two-fold in the past: accumulating a down payment and qualifying for a loan. But in recent years, more resources have helped women to get debt and other credit busters under control, and many adult children have returned to their parents to save for a down payment,” Baum notes.
Additionally, many ladies flying solo have been skittish about the stock market since the 2008 market crash.
“By contrast, homeownership is tangible and feels much more secure. You can see and use what you’ve spent your money on,” Baum adds.
Francine Viola, Realtor with Coldwell Banker Evergreen Olympic Realty in Olympia, Washington, says most of the single women she’s worked with have been widowed or divorced and came from previous homes they coowned.
“Getting a rental would be something very foreign to these buyers. Buying a home, on the other hand, seems like a very natural next step,”
Viola explains. “Plus, many of these clients are caregivers for children, grandchildren or parents. An apartment or rental home just cannot accommodate their needs, which is why stable, longterm housing is important to them.”
The bottom line? Purchasing a home can be a smart move for a woman going it alone.
“Buying real estate is one of the best long-term investments a person can make,” Kushi says, noting a recent Survey of Consumer Finances report that found the net worth of a homeowner is more than 44 times greater than that of a renter. “In the long run, a home is likely to grow in market value, allowing a single woman to build equity — something you can’t do when renting.”
Sarah Kruse, an agent with Portland, Oregonbased Weichert Realtors, says 1 of every 4 firsttime buyers she’s represented in 2020 are single women.
“I predict the rate of single women buying and owning homes will continue to increase, especially as work continues to become more remote,” Kruse suggests. Kushi concurs. “Single-women homeownership in the medium and long term, particularly for millennials, is anticipated to rise due to increasing educational attainment, income, and a desire for homeownership,” she says.