How Single Women are Building Wealth Through Homeownership

Estimated reading time: 2.5 minutes

Homeownership is an investment in security, community, and wealth. While many Americans may believe they have to have a spouse or partner to achieve homeownership success, there’s a demographic that pushes forward: single women.

Maxwell, a digital mortgage solution, just released a report on single women homebuyers, which ran through September 2023. The report analyzed data from 1,000 women and 300 men, aged 18 and up, who completed the mortgage process as single applicants within the past five years. Their research revealed unique habits and behavior about how and why this demographic has become one of the largest homebuying groups, second only to married couples.

How Women Break Barriers in Homeownership

Single women represent 22% of national market homebuyers, according to Maxwell data. This isn’t necessarily a new trend. According to the National Association of Realtors (NAR), single women have been the second largest group of homebuyers consistently since 1981.

Compared to men, single female homebuyers are younger and more diverse than other homebuyer sets. Data revealed that 55% of single female homebuyers are 34 years old or younger and an additional 39% identify as Black, Hispanic, Latino, Asian, or multiracial. According to Pew Research and Maxwell, Gen Z and millennials are two of the most racially and ethnically diverse generations in United States history.

Pushing Toward the Goal

According to Maxwell’s report, 40% of female homebuyers decided to buy to escape rising rent prices and achieve housing stability. While over half of responders held a degree from a university or vocational college, the gender pay gap persists. On average, American women are only paid 84% of what men are paid, as reported by the Department of Labor in March, 2023.

Despite the pay gap, many women continue through the mortgage process in a way that propels them forward, rather than waiting around for their chance. Over two thirds of Maxwell’s female respondents (64%) moved to another area with more affordable prices and another 41% used budgeting to afford pricier options.

How to Buy a Home as a Single Applicant

Secure Your Finances

Your finances and credit must be in excellent standing to qualify for home financing. Before you apply, ensure you don’t have any outstanding debt from credit cards, auto payments, or other loans. Over half of Maxwell’s respondents (60%) said it took them two years or more to save for a down payment.

Consider a Low Down Payment Mortgage

Remember, you don’t have to aim for a 20% down payment if you can’t afford it! Maxwell’s data revealed two thirds of women surveyed had a down payment of 10% or less and 20% of the same group put down 3.5% or less.

Work With a Local Real Estate Agent and Mortgage Lender

When you work with local housing professionals, they can provide crucial information about local housing trends and property values. When you work with a mortgage lender that puts people first, like Homestead Funding, your Licensed Loan Originator will handpick tailored mortgage programs that best fit your short- and long-term financial goals. When you’re ready to get started, contact us today!