Yahoo Finance Single men in the US now own fewer homes than single women — despite women earning $0.83 for every dollar men earn. Here's why this 'reverse gap' exists and what it means for you
Single women can now do more than just buy their own flowers — they can buy their own homes, too. And that’s despite earning just 83 cents for every dollar made by men, according to U.S. Bureau of Labor Statistics numbers and a new report by LendingTree.
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The analysis found that in 48 of 50 states, single women were more likely to own a home compared to single men. They also owned 2.64 million more homes than single men overall: 10.76 million compared to 8.12 million.
Here’s what's behind this phenomenon and what it might mean for the future of homeownership.
Explaining the reverse gap
So why are American women coming out on top when it comes to one of life’s largest purchases? The LendingTree study identified a few explanations based on the evidence they found.
First, single women tend to prioritize homeownership above single men, and are thus more willing to sacrifice in reaching that goal.
Second: That 17-cent wage gap shrinks or disappears among Gen Zers and late millennials. A Pew Research Center study found that women under 30 made at least as much as their male counterparts in 22 U.S. cities — and outearned them in at least 10.
At the top of the list, a woman under 30 in Wenatchee, Wash. makes 120% of what a man under 30 earns. In another 107 metros, they earned between 90% and 99% as much as the men.
Across older demographics, it’s possible (though not revealed by the LendingTree study) that single women weren’t single when they originally purchased their homes, but were since widowed or divorced. Study after study over the last generation shows that women outlive men; recent figures from the U.S. Centers for Disease Control place life expectancy at 76 years old for men and 81 for women.
Read more: The total value of your property is worth more than you think — here’s how you can enjoy peace of mind for way less
Single women home ownership grows
LendingTree noted the single women homeownership trend back in 2018, and it’s only continued to grow through the pandemic. As women continue to make strides in their education and employment trajectory, financial success follows — and owning a home becomes increasingly possible. That in turn creates a positive snowball effect of creating even more wealth.
An American who purchased a single-family home in 2011 made an average of $225,000 in housing wealth by 2021, according to the National Association of Realtors. And for those who bought cheap starter homes in markets that have since become hot, that figure is likely higher.
Honing in on homeownership’s future
Buying a house doesn’t necessarily mean you’ll make a killing, especially if the market you’re in goes cold. (Ask anyone who’s lived through the housing price roller coaster in Las Vegas.) That said, women who go on to meet a partner may wind up coming into a second property, which gives the couple the option of accruing rental income.
Again, single women who decide to buy a home often set themselves to attain future wealth, build an emergency fund and create passive income for life. Women have increasingly passed their male peers in grasping and leveraging this logic, the LendingTree study shows.
That said, it’s a difficult time for anyone to land a house or condo. High interest rates are making mortgages harder to manage, while inflation is eating into savings, including down payment funds. Add to that the record housing prices that persist in many markets, and you’ve got a perfect storm of non-affordability.
But where the facts don’t lie, every case is different — including yours. Your financial adviser can help restore you to the bedrock belief that with a plan, anything is possible.
Over time, homeownership can pay out in ways you’d never expect today. Ask any single woman who’s beaten the single men to the home owning punch.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
