Single Women Homeowners Are on the Rise

Today kicks off the start of Women's History Month! What better way to celebrate than shining a light on some interesting female-driven homeowner statistics? 

For a country built on the right that no one shall "be deprived of life, liberty, or property," it took women a long time to get to the "property" piece. In fact, it took until 1900 for every state to approve property-owning laws for married women, thanks largely in part to the Married Women's Property Act in 1848 and the Act Concerning the Rights and Liabilities of Husband and Wife in 1860. Fast forward all the way to 1974 when congress passed the Equal Credit Opportunity Act. Until this time, it was technically legal for banks to refuse loans and credit to unmarried women, but this law opened the door to property ownership for women unlike ever before. 

And today, we're seeing more single women than ever are buying homes.

The NAR 2021 Profile of Home Buyers and Sellers reported that in 2021, women's homeownership rate had reached 61.2%, a huge increase from 50.9% in 1990. But it's not just women in marriages. According to 2021 census data analyzed by LendingTree, roughly 10.7 million homes in America are owned by single women, or women living alone. Compare that to the 8.1 million owned by single men, and that breaks down to an average ownership rate of almost 3% more. 

Amazingly, they also found that single women were more likely to own a home in 48 out of 50 states than single men (with the exception of North and South Dakota). The largest gap in homeownership rates was in Florida, where the gap was 4.55% and the smallest was in Wyoming, where it came out to just 0.39%. So if you're thinking to yourself "where my women homeowners at?" the answer could very likely be Louisiana, Alabama, or South Carolina – the states with the largest share of single-women homeowners as of 2021. 

So what's driving this change?

Analysts agree the rise in homeownership for women is interesting considering women are still making less than their male counterparts throughout the country. However, LendingTree points out a note-worthy statistic – women younger than 30 are earning at least as much as their male counterparts in 22 of the United States metro areas, including New York, Washington D.C., and Los Angeles. In another 107 metros, women younger than 30 earn 90% to 99% of what men younger than 30 do. 

Since the average age of first-time homebuyers in the United States is still sitting at 36 years old (an all-time high) this may not be contributing as much to the numbers as one would think. But, recent data shows more women are enrolling in college than men and there's evidence that single women prioritize homeownership more than single men. As millennials and Gen Z continue to take their spot in the real estate market, we may continue to see these numbers rise. And as they rise, so does their equity. 

Let's not forget that homeownership is one of the best ways to accumulate a higher net worth and build equity. According to KCM, the average household net worth for homeowners in 2022 was $300,000 – as opposed to renters with $8,000. Homeownership is a powerful tool for independence and women are seizing that opportunity.  

Hurdles aside, what we do know is single women are the second largest group of homebuyers, making up 19% of all buyers in 2021. This is just second to married couples, who are taking a lot of real estate at 60%. As years go by, we're seeing a new emphasis on homeownership for women and the numbers show more and more homebuyers are chasing after their real estate dreams, no ring necessary. 

If 2023 is the year you want to learn more about homebuying, Baird & Warner can help. If you're just starting out, our HomeEasier Workshops are a great (free!) way to learn more about the steps it takes to purchase your first home – from setting up your credit for success to finding a team that works for you. If you want to learn more about how much you can actually spend on a home, our Key Mortgage team is here to talk about prequalification and preapproval with you, as well as the myriad of financing options available (spoiler alert: there's more than just a fixed 30-year rate). And when it's finally time to start looking, our Baird & Warner agents are here to help you find a home that fits your needs and makes the homebuying experience easier. 

We empower our agents with the tools they need to help every interested homebuyer accomplish their real estate dreams. What can we help you do this year?