Skip to content

Single Women are Becoming Homebuying Force

October 20, 2016


When it comes to investment property mortgages, men and women have their differences. 

That’s according to a new study from the Urban Institute, which details several surprising findings around how men and women handle their mortgage payments.

A major finding of the report is that women – particularly single women – are becoming a force to be reckoned with in the mortgage industry. Although single women have a greater likelihood of having poorer credit scores, living in lower-income neighborhoods and paying higher-priced mortgages, they are also more likely to put down a larger down payment and have a smaller loan-to-value ratio than single men, according to the study.

Additionally, single female borrowers are less likely to default on their mortgage payments than their male counterparts, the report found. This conclusion is surprising because lower credit scores might indicate that these borrowers would be more likely to miss payments, but the opposite turns out to be true, the study’s researchers explain. This trend held true across all racial backgrounds and even during the recession, the report found. The motive behind this is most likely a higher rate of risk-aversion behavior among women than men, according to the study.

Bloomberg also came out with a recent study which found that in a wide range of markets, including Boston, Charlotte, Columbus, Los Angeles, Louisville, and San Francisco, the share of women making more than $100,000 has increased from 2012-2014. These numbers correspond with a National Association of Realtors report which find single women have consistently been buying homes at a higher rate than single men throughout the 21st century.

Despite these findings, women are still rejected for mortgage loans slightly more often than men, according to the Urban Institute’s report. Twenty-three percent of female mortgage applicants were rejected compared to 21 percent of males in 2014, the report found.

But single women are on track to continue gaining buying power in the mortgage industry. Fifteen percent of homebuyers in 2016 were single women, and their share of the industry is likely to grow, according to MarketWatch.



No comments yet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: