Connecticut Real Estate Blog - Real Real Estate in CT

This is an article I wrote for First-time Homebuyer Magazine a while back, with some updated statistics from the 2006 Profile of Home Buyers and Sellers from the National Association of Realtors.

According to two studies from Harvard University’s Joint Center for Housing Studies and the National Association of Realtors, one of the fastest growing groups of home buyers is single women. The number of single women buying homes has increased from 14%of all home buyers in 1995 to 22% in 2006. Meanwhile, the largest segment of home owners, married couples, has been shrinking.

More single women are buying homes simply because they can– college graduation rates, workforce participation, and earning power are at all-time highs. In addition, general demographics are changing – there are just more unmarried women than ever before. And when women do marry, they are doing so later in life. Single women no longer see marriage as a precursor to home ownership and are more likely to want the responsibility that comes with home ownership than are single men.

Some other statistics that are worth mentioning - Single mothers make up almost 30% of all unmarried women buyers. And more single minority women are buying homes than married minorities.

While home ownership is more accessible to single women, there are still challenges to women home buyers including finding affordable housing and discriminatory lending practices.

Due to lower average incomes, almost three-quarters of single women buy homes under $200,000. With the median home price in Connecticut at $255,000 in 2006, it’s clear that single women in our state face a lack of affordable housing. The Harvard study shows that single women are more likely than other groups to purchase condominiums, which are often a more affordable housing option than single family homes. Condominiums also offer some features more likely to attract single women buyers such as a sense of community, gated or secured access, and access to social activities such as a fitness center.

In addition to affordable housing access, single women buyers also face lending discrimination. The Consumer Federation of America released a study in December of 2006 showing that women were more likely than men to be put into higher-cost subprime mortgages, regardless of their credit and income when compared to men in the same market.

Sources:

“Buying for Themselves: An Analysis of Unmarried Female Home Buyers,” Harvard University’s Joint Center for Housing Studies

2006 National Association of Realtors Profile of Home Buyers and Sellers

“Women are Prime Targets for Subprime Lending,” Consumer Federation of America