Single Women Snatch Up New Homes, Mortgages at Record Pace
What segment of the population has been keeping every mortgage company busy latel? You may be surprised.
The latest housing industry surveys show that single women are the fastest-growing demographic of homebuyers – now second only to married couples. They account for nearly one in four homebuyers and purchase houses at more than twice the rate of single men.
Researchers say a combination of social changes and finances have led to the increase.
“More women are simply living alone – either never married or formerly married – and are much more active in career paths earning more money than ever before,” said James Gaines, an economist with Texas A&M University’s Real Estate Center.
Mr. Gaines said it is also “no secret that for the past five years or better, homeownership has been a very desirable investment position.”
He also points out that “historically this was a small group in terms of homeownership, so any increase will look large in percentage terms.”
Over the last 10 years, single female home buyers have been the fastest- growing segment of the housing market, according to surveys by the National Association of Realtors.
This year, they make up about 22 percent of buyers, compared with 14 percent in 1995, Realtors’ research shows. At the same time, the number of married couples in the market has fallen by almost 10 percentage points to 61 percent, while single male buyers have remained unchanged at about 9 percent.
Whatever the reason, home builders are catching on to the shift in the market.
“We are looking for opportunities to address this market,” said builder Steve Wall. “Having products that address each of the buyer groups is important.
Real estate agents are also refocusing efforts to attract single female buyers at a time when the overall housing market is a bit soft.”I’ve had a lot of female buyers this year,” said Kim Fowler with David Griffin & Co. Realtors. ” My average age of the five or so single women I have sold to this year has been about 28.”
Ms. Fowler just sold a two-bedroom condo in Oak Lawn to Laurie Self, who’s in her mid-30s.
“The rent just went way up at my apartment – that was part of my motivation,” Ms. Self said. “Mortgage rates are good now, and it’s a buyer’s market.”
Ms. Self, a corporate auditor who lives near the High Five interchange in North Dallas, was also interested in moving deeper into the city.
“I saw how real estate prices were going up like crazy,” she said. “I can flip it in a few years and have some equity.”
As sellers continue to offer incentives and mortgage rates remain low, expect this demographic - as well as others - to continue its home buying ways.