Trend of More Single Women Buying Houses to Grow Wealth

Single women are breaking barriers and closing the homeownership gap with creative strategies, challenging the traditional head start of single men.

“Homes have unlocked new revenue streams and offer women a path toward financial independence”, says Sunita Gill, cofounder and COO of Singapore Luxury Homes. 

That’s important because even though women have a higher compound annual wealth growth rate outpacing men, accounting for an estimated 32 to 40% of global wealth, they still don’t profit from it proportionally.

Headlines proclaiming that women are better investors than men paint a picture of female empowerment. However, a study by Yale University highlights that single women get lower returns from housing investments. This keeps steady when looking at OCBC insights on women without children investors, with 53% of women having investments versus 69% of single women; the latter also accumulate wealth through primary residential property. 

The latest UOB Asean Consumer Sentiment study found women are more ‘risk-alert’ than men, which generally follows the sentiment of the Yale study that highlights the gender gaps in wealth accumulation. Analysis reveals that the disparity in timing real estate acquisitions by gender is responsible for just under half of the observed gap. 

Negotiation is the next largest factor, especially when female buyers engage with male sellers, leading to significant price negotiations. The delineation between market timing and negotiation is often blurred, as a woman’s personal priorities influence buying and selling decisions beyond mere financial returns.

At Singapore Luxury Homes, we want to help women—both single and with children—grow wealth through homeownership. When she made her first property investment, Gill realised that few resources were available for women who wanted to buy their first home. She then founded a brokerage geared toward helping investors understand the real estate market.

“The journey to owning a home is rarely straightforward, and there’s no need for women to postpone this milestone until they find a partner,” explains Gill.

Single women typically enter the housing market at an older age than single men, forfeiting early years of wealth building. Historically, men have conversations about money. It may have been less taboo to talk about investing in circles of men, so they get started earlier than women. But this is changing with millennials and Gen Z women. It doesn’t mean you’re settling down, but buying a home provides a key piece in freedom through wealth building. 

Gill estimates that 80% of Singapore Luxury Homes’ clients are women, and 50% of those women are unmarried. They often coach potential buyers, especially single women, to think outside traditional paradigms of homeownership and more at it as a vehicle for long-term security.

Breaking Down Barriers to Home Ownership for Women

“Many women have successfully invested in real estate — you don’t need to start from scratch,” Gill suggests. “Lean on those who’ve been there, focusing on who can help rather than just how.”

Recently, we helped a young single female buy her first home. When we reviewed the URA’s indicative valuation and reported caveats, the value of other units in the building was increasing, driving up the asking prices. We discovered that a similar unit recently sold for an unexpectedly higher price due to significant renovations and upgrades, increasing the asking price. We advised her to submit a lower yet reasonable offer using our insight. The sellers accepted, and a couple of months later, she became the proud owner of a two-bedroom in the Orchard neighbourhood.

Real estate is a significant part of household savings and retirement. Losing on housing investments affects the gender wealth gap. With new insights into the traditionally lower women’s performance in the housing market, being more prudent is wise. Working with a seasoned real estate professional can make a difference in long-term investment strategies and wealth accumulation through real estate.

HOME BUYING TAKEAWAYS FOR SINGLE WOMEN

• The gender gap in real estate returns diminishes significantly the longer you hold onto a property. When purchasing a home, consider it a long-term investment. Aim for a holding period of 10 years or more to minimize the annual return difference and maximize your investment’s potential growth.
• Timing plays a crucial role in real estate transactions, with single men being better at market timing. Women should seek to improve their market timing skills to bridge this gap. This could involve conducting thorough market research, staying informed about real estate trends, and delaying purchases or sales to capitalize on market conditions.
• Since negotiation plays a significant role in the observed gender gap, developing strong negotiation skills becomes essential. Engage a real estate agent to negotiate on your behalf with a track record of successful transactions and who offers insights into the best times to buy or sell.