A New Home Buying Force: The Single Woman

Can anyone say, “I am woman, hear me roar!”? According to the latest National Association of Realtors (NAR), single women are the second largest home buying group behind married couples. The data shows that women make up 14% of the home buyer market – a percentage that accounts for a third of overall home ownership growth since 1994.  With a median age of 32 and an average income of $49,500 it seems “all the single ladies” are taking the plunge into owning their own home ahead of their single male counterparts who only account for 7% of the home buyer market. In an article released by NAR, Chief Economist Lawrence Yun stated, “Single women for years have indicated a strong desire to own a home of their own, as well as an inclination to live closer to friends and family.  With job growth holding steady and credit conditions becoming somewhat less stringent than in past years, the willingness and opportunity to buy is becoming more feasible for many single women.”

So why all the single woman home buying? Here are just a few reasons women are deciding to make their purchase single:

Investment in the Future

One reason cited for home purchase is the investment opportunity.  Though women are still making about 20% less than single men, women are more than ever in the place where they can invest independently in their own home. In an article by Quicken Loans, James Phillips, a single woman from Houston said, “I want to give myself the stability, the investment, and the legacy.”

Renting no more

The high cost of renting is also pushing single women to purchase. In spite of Class A apartment rents being at an all time low in Houston – currently averaging at $1,420 rent rate per month, many women still don’t believe this offers greater advantages over buying. Ashley Beggins another single Houston woman said, “I’m currently renting, but want to buy. I feel like home owning offers me stability. I’m throwing money away and renting is not an investment into my future.”

Ms. Independent

Women (and men for that matter) are marrying at a later age. The Census Bureau reports the average marrying age for women is between 26 and 27 and 28 and 29 for men. Also, according to an article from National Mortgage News, “The share of households with married couples dropped 0.4% year-over-year in 2015.”  Rather then marrying first and purchasing later single women are doing the reverse.  Gone are the days where the scarlet letter phrase “Jane Doe, a single woman” were included on the purchase contract. Single women not only have the means to purchase a home on their own, but also culturally it’s a lot more acceptable then it used to be.

Single woman graphic

Sources:

https://www.quickenloans.com/blog/trending-single-women-buying-homes

http://realtormag.realtor.org/daily-news/2016/06/02/pay-attention-single-female-home-buyers

https://www.census.gov/hhes/socdemo/marriage/data/acs/ElliottetalPAA2012figs.pdf

http://www.nationalmortgagenews.com/news/origination/the-link-between-education-and-homeownership-deepens-1077428-1.html?utm_medium=email&ET=nationalmortgage:e6689537:482191a:&utm_source=newsletter&utm_campaign=daily%20briefing-may%2010%202016&st=email&eid=9cdc3e1ad3ee0e7b32239dcbbe139069