The fastest growing group of home buyers?single women

Single women account for 22% of the current home buyer market, and overall their backgrounds are more Different kinds A Maxwell report found that their male allies were more important than male allies.

While singles of both sexes are entering the property market, female applicants have increased by 10% since 2021, while male applicants have only increased by 7%.

However, single women have occupy a larger share LendingTree data from January found that this group owned 10.76 million homes, or 12.9% of all owner-occupied properties, while single men owned about 8.12 million homes, or 10.06%.

Data from the National Association of Realtors points out that the proportion of single female homeowners has been higher than that of single men since 1981, when it was 11% to 10%; by 2021, the gap is 10 percentage points, at 19% to 10%. 9 %.

Maxwell’s research found that single female buyers are significantly more diverse.

Four in 10 (39%) identify themselves as black, Hispanic, Latino, Asian or multiracial, compared with 21% of men.

More than half of home buyers are female (55%) Under 34 years old, while the proportion of men is 40%. About a third said they were in a relationship but chose to go it alone because they were the breadwinner, they had better credit, or they had more savings.

However, the Maxwell report found that female buyers only made more than male buyers at the lower end of the salary scale. The most significant gap is between $100,000 and $149,999, where 35% of single male buyers make that much compared to just 21% of single male buyers. % of single women would fit here.

Another report just released by NAR shows that by 2022, median household income will For all first time home buyers The top price was $95,900, up from $71,000 last year.

At lower incomes, single women earn more, while at higher incomes, men earn more, but the gap is not as large.

“Today, we’re seeing women take a ‘whatever it takes’ attitude towards homeownership,” Amy Jo Plummer, Maxwell’s vice president of customer success and an individual applicant, said in the report A woman who purchased two properties as a person. Many are recognizing that their incomes are not comparable to men, and women who are buying their own homes are looking for other ways to obtain financing—whether it’s lower down payment options, first-time homebuyer programs or other creative methods. “

Still, the majority of single female mortgage applicants seek some form of traditional financing. About 30% are applying for 30-year fixed-rate mortgages, while another 27% are seeking 15-year FRMs. Jumbo financing accounts for another 5% of applications. Adjustable rate mortgages, which were popular when interest rates were higher, were sought in 13% of cases.

Meanwhile, government-guaranteed or insured loans totaled 20% of the market among single women, with the Federal Housing Administration leading the way at 8%, and the Department of Veterans Affairs and the U.S. Department of Agriculture each accounting for 6%.

In terms of down payment, 20% of women have a down payment of 3.5% or less, while the other 60% have a down payment of less than 10%.

Nearly a quarter admitted to borrowing money from family or friends.

By property type, 51% of single women purchased a single-family property, 18% of single women purchased a condo, condo, or townhouse, 14% of single women purchased a multifamily property, and 10% of single women purchased an event houses.

Nearly 20% of people who purchase a home hope to use it as a long-term rental or Airbnb.

Plummer included. “My husband and I plan to travel extensively at some point in our lives. By owning an investment property, I’m helping to ensure we have the opportunity to pursue that future.”

When it comes to the future, 40% of respondents said they want housing stability; this may extend to financial stability as well. a woman’s wealth They are tied to housing because it represents a larger share of personal assets, said Ksenia Potapov, an economist at First American Financial.

She said more than half (52%) of single female-headed households are homeowners, according to an analysis from the 2022 Census Bureau Current Population Survey Annual Social and Economic Supplement.

According to the latest wealth statistics from the latest Consumer Financial Data Survey 2022, for single women, housing has always represented a large proportion of total assets.

Potapov said: “Over the past 30 years, the average inflation-adjusted wealth of a single woman has increased by 124%, from just over $165,000 in 1989 to $369,000 in 2022, while housing remains The largest component of their wealth.” “For the average single female-headed household, housing represents 66% of total assets, according to 2022, the most recent data available.”

Maxwell’s survey revealed that getting a loan is itself a problem, with 30% of single female borrowers not confident in getting a mortgage, with a quarter claiming to not trust their loan officer. These proportions were 10 percentage points higher than for single men.

but as a recent JD Power Home Loan Originator Customer Service Satisfaction The survey found that communication is key to gaining trust.

More than half (57%) of respondents told Maxwell that proactive communication about the next step is how loan officers earn trust. This was followed by 53% suggesting the best option for her unique situation, 51% facilitating a quick and smooth process, 41% establishing a personal connection, and 41% providing comprehensive information and education.

While 67% of single men chose a national bank, only 50% of women chose this option, with 35% choosing a local community lender and 15% choosing an online lender.

“I chose my agent because out of the many loan options, he stood out,” Plummer said. “While others could match or even beat him on the rates, he was on the next step, timeline, cost and process.” Very good at communication.”

Maxwell’s survey, completed in September, gathered responses from 1,000 women and 300 men who had completed the mortgage process as single applicants over the past five years.

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