Throughout Women’s History Month, we reflect on women’s impact on our lives, including the impact on the housing market. Why is homeownership so important? In fact, since at least 1981, single women have bought more homes than single men each year, making up 17% of all households.
Why Is Homeownership So Important to Women?
Owning a home is a universal symbol of financial independence. Not only does owning a home provide stability and security, but it also offers numerous benefits that help to empower women and improve their quality of life. The rise in women pursuing homeownership hasn’t just impacted the housing market. It’s also been an asset for those buyers and their households. That’s because homeownership has many benefits, both financial and personal.
On the financial side, housing proves to be the key to building wealth for single women. Ksenia Potapov, Economist at First American, says:
“For single women, housing has always made up a large share of total assets. Over the last 30 years, the average single woman’s wealth has increased 88% on an inflation-adjusted basis, from just over $142,000 in 1989 to $267,000 in 2019, and housing has remained the single largest component of their wealth.”
However, with the passing of the Equal Credit Opportunity Act in 1974, women in the United States were granted equal access to credit and the ability to secure loans to buy homes. The act prohibited lenders from denying women loans based on gender or marital status. This opened up new opportunities for women to own homes and gain financial independence.
Homeownership Helps Build Financial Security.
Homeownership can provide financial security and stability for anyone, but for women, it can be incredibly formative; rather than being bound to the fluctuation of rent, a stable mortgage payment can predict their budget while building equity and wealth over time. This can help budget for other important costs like emergency savings, retirement, and living expenses.
Homeownership Fosters A Feeling Of Empowerment.
Homeownership gives women a sense of control over their living situation and the ability to make decisions about their homes and community. This sense of control can lead to empowerment and increased self-esteem and confidence.
Homeownership also comes with responsibilities, including maintenance, improvements, and financial discipline. This inspires women to often play a more significant role in home renovation and design projects than their male counterparts.
Homeownership Inspires A Desire For Community Involvement.
Women who own homes are often more involved in their communities and have a greater stake in their neighborhood’s well-being. They are more likely to get involved in local organizations and initiatives and to work with their neighbors to improve the area.
For example, women are far more likely than men to volunteer for local school boards and community non-profits. This sense of belonging can provide a robust support system, which can be especially important for women raising children independently.
In addition, women are more likely to seek local professional help when buying a home, such as working with a real estate agent, financial advisor, general contractor, or estate planner. This can lead to more informed and confident homebuying decisions for women while boosting the local economy.
Homeownership Provides A Financial Legacy For Loved Ones.
Homeownership can also be a legacy for women, providing a tangible representation of their accomplishments and real investment power for their future.
This can lead to a healthier investment portfolio when it’s time to retire. Investment properties can be passed down to loved ones, and equity can be used in retirement as a reverse mortgage loan, a home equity tool that allows homeowners aged 62 or older to tap the wealth in their homes.
Homeownership has played a significant role in the history and empowerment of women. It provides:
- Financial security.
- A sense of empowerment.
- Increased community involvement.
- A legacy for future generations.
Women who own their own homes are better equipped to handle the challenges of daily life and are more likely to experience a sense of security, pride, and accomplishment. Whether you’re a young woman just starting or an experienced professional looking to secure your future, home ownership is a goal worth striving for.
The financial security and independence of homeownership can be life-changing, too. And when you factor in the personal motivations behind buying a home, that impact becomes even clearer.
A recent report from the National Association of Realtors (NAR) shares the top reasons single women are buying a home right now (see chart below):
Today women, especially single women, are a force in homebuying, overcoming some of the most notable challenges, including property affordability, adequate savings, and good credit.
Homeownership can be life-changing, no matter who you are. Let’s connect with Homes Of Rockies today to discuss your housing market goals.