Investing in real estate is a priority for females in today’s market
The desire to own a home of your own in today’s world is overwhelming, especially for female homebuyers. Most people desire a place to call home due to the sense of security it provides. This is especially true for females entering the world of home ownership.
According to Keeping Current Matters, for the second year in a row, single female buyers accounted for 18 percent of all homebuyers in 2018. Also, in 2017, an overwhelming 60 percent of single millennial women were listed as the primary borrowers on mortgages.
Statistics also indicate that one in five homebuyers in the United States were single females, mostly from the baby boomer generation. Not surprisingly, the U.S. Census Bureau has reported that 50.8 percent of this country’s population is female. Add to that, 15.6 percent of the female population in the U.S. is 65 years and older.
According to the 2018 Home Buyer and Seller Generational Trends compiled by the National Association of REALTORS®, 13 percent of home buyers purchased a multi-generational home in order to take care of aging parents, to save money or because their children, over the age of 18, are moving back home for a variety of reasons. Among this 13 percent, one in five buyers, between the ages of 53-62, were the purchasers of a multi-generational home. At 17 percent, the second largest share, were buyers between the ages of 72-92 years.
Obviously, the reasons for purchasing a home differed across the generations. For those under the age of 62 years, the primary reason was to own a home of their own. For those 63 and older, 25 percent of potential homebuyers, there was an overwhelming desire to reduce the distance between themselves and friends and family. At 19 percent, buyers between the ages of 72-92 also desired a smaller home.
The Internet played a significant role as for nearly all generations of homebuyers; the initial step was to look for properties online. The exception was buyers 72 years and older who sought the services of a real estate agent to assist them.
The reasons for an increased interest in homeownership are varied. According to an article published by Bankrate, the divorce rate has doubled for females who are 50 and over. The divorce rate has tripled for those who are 65 and over. Add to that, the average life expectancy for women is 81, eclipsing the life expectancy for men.
Bankrate also suggested that women are seeking ways to build equity through their home and “some are hoping to escape rising rents,” while “some might be downsizing or looking for a new start.” Additionally, ladies experiencing a so-called “gray divorce” appear to be downsizing by purchasing smaller homes.
Add to the mix a report by The Institute of Luxury Home Marketing: “The number of female billionaires grew faster globally in 2017 than the number of male billionaires. This redistribution of wealth has seen an impact on luxury real estate both in its purchase and design attributes–and obviously, this is important for realtors to recognize when relating to their clients.”
The bottom line appears to be that some females are looking to purchase starter homes. Then there are those who are looking for that luxury home they have always wanted. There may even be a female who is emerging from a divorce. It is possible for you to create your real estate portfolio no matter your age or the circumstances.
Kathryn Vallee is prepared to assist you with your needs.
Links to sources of additional information:
Females Are Making It a Priority to Invest in Real Estate! https://www.mykcm.com/2018/11/20/females-are-making-it-a-priority-to-invest-in-real-estate/
Home Buyer and Seller Generational Trends Report 2018 https://www.nar.realtor/sites/default/files/documents/2018-home-buyers-and-sellers-generational-trends-03-14-2018.pdf
Single Female Homeownership is Baby Booming https://www.bankrate.com/real-estate/single-female-homeownership-booming/?sf200412184=1
Why Single Women Build Less Equity in Homes https://www.thestreet.com/story/14432171/1/women-earn-less-in-equity-than-men.html
Best & Worst Cities for First-Time Home Buyers https://wallethub.com/edu/best-and-worst-cities-for-first-time-home-buyers/5564/
Minorities, Women Losing Out on Homeownership and Tax Breaks https://www.trulia.com/research/minorities-women-mortgage/
Women Breaking New Ground as Real Estate Investors https://www.auction.com/blog/women-breaking-new-ground-as-real-estate-investors/
Women Real Estate Investors Build Long-Term Wealth as Landlords https://www.auction.com/blog/women-real-estate-investors-build-long-term-wealth-as-landlords/
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