Single Women Emerge As A Driving Force In Real Estate

March 1, 2008

Well, I got a twenty dollar gold fee
That says there’s nothing that I can’t do
Well, I can make a dress out of feeding sacks,
And I can make a man out Of you.
‘Cause I’m a woman…
W-O-M-A-N.
Lyrics from I’m A Woman | Songwriters: Jerry Leiber, Mike Stoller

According to a report by the National Association of Realtors, single women are the fastest growing demographic of homebuyers in the Country. The report states that 22% of homebuyers are single women. Up nearly 14% since 1995.

Other than married couples which top the list, single women are the biggest percentage of homebuyers. Sorry guys, single men still have not grasped the idea of homeownership and lag far behind at 9%. Over the age of 45, single women represent the largest demographic of homebuyers in the nation.

Why are so many single women buying homes? Well we asked a few and the answers are pretty much as expected. The top answers are:

a. not having to rely on a man to shelter them
b. security, financial and safety reasons
c. a sense of independence and self worth
d. for the tax advantages
e. as an investment

Noticeably absent in most of their responses was a home to raise children. This may be somewhat indicative of the fact that most of the single women buying homes are professional women with stable jobs and upwardly mobile careers.

These women are also tech savvy, have proven to do a great deal of their target research in advance and are quite assertive in their purchasing of home often making an offer within just 3 viewings. These are confident women with a plan and are not the least bit intimidated by the complexity of entering into such a large financial commitment on their own.

It’s been a long time since women were looked at as being financially frail. As if having a spouse or significant other was needed for some form of validation. Since 1975, when Congress passed the Equal Credit Opportunity Act, which made it illegal to turn down a credit applicant on the basis of sex or marital status, lenders have been courting the single woman as a legitimate borrower.

Elizabeth Weintraub, a real estate Agent in Sacramento, California with over 30 years of experience lists some very interesting points of reference regarding what single women look for in buying their own home:

Trends for Single Women Home Buyers

68% of single women spend less than $200,000
Prefer 2 bedrooms or more
Less likely to choose new construction
Buy in city over suburban areas
Will compromise size & cost to get other amenities
Will not compromise on location or quality of neighborhood
overwhelmingly prefer condominiums over single family homes
Smaller spaces are acceptable
Desire security and / or gated access
Like to engage in social interaction with neighbors
Want close proximity to stores, shopping and fitness centers

This surge in single woman homeownership is not just an American phenomenon. Canada is finding even bigger numbers regarding single women. An amazing study was conducted in Canada regarding women as homebuyers. In Canada, Thirty per cent of single women own their own home. In fact 34% of single Canadian women said they would more than likely cancel a wedding reception if they needed to put more money down on a home.

Another category of single women is the growing number of single mothers. Single mothers make up almost 30% of all unmarried women buyers. And more single minority women are buying homes than married minorities.

The role of single women and there impact on the housing industry is underscored by a recent Harvard University study. With an average of about a million home buyers a year, unmarried women can represent a significant market base for those developers and real estate agents that choose to target this segment. Yet few do.

How do you reach this demographic? You need to develop a comprehensive marketing campaign directed at giving these women what they want. It’s clear what they are looking for. Read the Harvard Study and create a laser targeted marketing initiative geared towards you as an agent becoming an authority figure on the needs of single women.

Seth Godin’s recent article on the real estate industry mirrors what many in the marketing world and in a Web 2.0 environment have been stating. That is, you need to become the expert by means of micro-specialization. Single women, Black single women, Asian single women, Christian single women, Jewish single women, new college graduate single women…the possibilities for micro-specialization are endless!

Here is a niche that exists in every market in the USA. Who is the go to authority about the needs and desires of single women in your area? You don’t have to be the next Oprah but you sure as can be try!

You go girl!