Homeownership Rates Among Women Declined Last Year. Here’s How You Can Buck the Trend

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Women are losing some of the gains we made in homeownership rates. Read on to learn what to do if you’re a woman looking to buy your own home. 

After a misadventure with homeownership over a decade ago, I’ve got my sights set on buying a home again, perhaps next year. I’ll be making the purchase on my own, as my finances are completely solo, and until recently, a growing number of women just like me were also buying homes alone.

Recent data from Zillow notes that in 2016, just 19.4% of young single women owned homes, as compared to 29.6% of young single men, a difference of more than 10%. In the ensuing five years, however, this gap shrunk to just 1.8%, as women made gains in the workforce and income. By 2021, 28.6% of young single women owned homes.

Unfortunately, the last few pandemic years have cut women’s progress in home buying (thanks to more women having to leave the workforce to take on caregiving duties), and as a result, in 2022, the homeownership rate among young single women stood at 24.5%. This is disappointing news. The good news, however, is that if you, too, are a woman hoping to buy a home of your very own, on your own, there are a few things you can focus on to make it easier.

Save, save, and save some more

I don’t have to tell you that buying a home is an expensive endeavor. This is even more apparent when you’re planning to get that mortgage loan based on just your own income.

While it’s not a strict requirement that you make a 20% down payment, you will have higher mortgage payments if you don’t, as mortgage insurance will be included (this protects your lender if you buy with a lower down payment) until you get to 20% equity. You’ll also need to save money for closing costs (often 2% to 5% of your home’s purchase price). And it’s a solidly good idea to leave yourself with some cash savings even after you’ve closed on a home, in the form of a maintenance fund. Why? If something breaks in your new home, it’ll be on you to get it fixed.

Beyond these costs, you’re also going to need to pay for a move from your old residence to your new home, and you might want to have the ability to perhaps buy new appliances or maybe some lovely new furniture for the home. In short, you’re going to want to save a good chunk of money before attempting to buy.

Focus on improving your credit

The other part of the home-buying puzzle is your credit score. And again, prospective mortgage lenders will only have your financial background to go off when deciding to approve (or deny) your application, so your credit definitely counts here.

Get a copy of your credit report (free every week through 2023), and comb through it for errors or old delinquent accounts that should have been removed by the credit bureau. If you find some, you can file a dispute. Having these removed will boost your credit score.

If you can pay down existing debt (especially credit card and other high-interest debt), that will also increase your credit score ahead of applying for a mortgage. Instead, you can save the money you would have been paying toward your debts for your down payment or that amazing purple sofa you’re hoping to get for your new living room.

Consider buying in a lower-cost area, if possible

Finally, if you don’t have your heart set on buying a home in an expensive area, looking at other cities for better home prices could be a good move for you. I’m pretty fortunate that all my travels in my old career eventually brought me to a part of the country with reasonable home prices — there’s no way I’d be able to buy a home alone (or possibly even with a partner) in certain areas.

The Zillow report notes that the highest share of affordable homes for single women buyers are found in Detroit, St. Louis, and Pittsburgh, for example. Do some research to find the city that fits your lifestyle — and your home-buying budget.

Higher mortgage rates and lost gains thanks to COVID-19 have made buying a home more difficult for a lot of women, but if you focus on saving money and boosting your credit, and perhaps consider lower-cost cities, you may just find yourself saying “Home, sweet home” someday soon.

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