Single Women Experience Slower Home Appreciation than Single Men
Single ladies don’t get to fare well compared to single men as far as real estate is concerned.
Recent studies have revealed that the houses of single men managed to appreciate more in value compared to the homes of today’s single ladies. Houses that are under the ownership of single men are found to have an average worth of $63,921 or even more, from time of its purchase up to the present. It means that there is around 33.4 percent return on the price of the purchase. On the other hand, the homes of single women have just managed to appreciate in an average of $53,809 since the time of purchase, with a return on purchase price reaching only at 30.7 percent.
Reason for this Discrepancy:
What could be the explanation behind this discrepancy, then? Since women usually earn less compared to men, the tendency is for them to purchase houses of lower value which also tend to appreciate at slower rate.
Women who work full time only get to earn around 79 percent of what men who work full time get to earn, as revealed by government data. This wage gap over a career of 40 years only mean that women earn around $430,480 less compared to men, which then gives them remarkably less purchasing power than the men.
Aside from that, women also have the tendency to pay more for the mortgage compared to men. On the average, women are paying 0.4 percent more in terms of interest on the mortgage than the men do, as revealed by the study that was published in Journal of Real Estate Finance and Economics in 2011.
Although it might not really sound like a lot, this can add up after some time. For a mortgage of 30 years, this can mean that a man will pay $26,000 less in terms of interest during the life span of the loan compared to a woman, presuming that he will get a 5 percent mortgage rate while she will get a 5.4 percent rate. The study’s authors blame this difference on the reality that women, more than men, will likely choose lenders according to recommendation. As they say, men tend to look for the lowest rates.
The truth is that there are a lot of single female homeowners who were able to seen large gains in the value of their home. And in certain markets, houses owned by single ladies even manage to outperform the houses owned by the single men as far as return on investment is concerned. These markets are actually the exception, and these include New Jersey, D.C., Nevada, New York, Pennsylvania, and Virginia.
In addition, single women also have the tendency to reside in a community with lesser environmental risks levels compared to men. These risks can include areas near former drug laboratories and Superfund sites, and places with bad air quality.
As a society, we need to think about it and come up with innovative solutions to empower women more broadly in society and this can have a positive impact on others.