The gender wealth gap extends to real estate: Yale study

Single women pay more for homes and get less when they sell, according to the research

National /
Feb.February 29, 2020 09:00 AM
Single women lose out on returns compared to men (Credit: iStock)

Single women lose out on returns compared to men (Credit: iStock)

The wealth gap between men and women appears to extend beyond wages – it’s in the real estate space.

Single women who buy real estate see 1.5 percent lower annual returns on their investment compared to their male counterparts, according to a recently published Yale study. The researchers analyzed U.S. transactions from 1991 to 2017.

The disparity comes down to purchase and sale prices. Single women pay about 2 percent more than single men when they buy a home and tend to get 2 percent less when they sell.

In terms of dollars for the median house price and median holding period with a 20 percent down payment, that’s about $1,600 in annual returns that single men see that single women do not.

There could be many reasons for the disparity. Gender bias may play a role in negotiations for purchases and sales, said researcher Kelly Shue, pointing to studies on car buying that found women didn’t get the same discounts that men when they used the exact same script during negotiations.

Market timing accounts for “a little bit less than half” of the gap, Shue said. Women are more likely to have dependents than men, which could restrict flexibility, the study found. The study found the gap is lessened if the holding period is longer.

Some women may be willing to pay more for particular homes compared to their male counterparts, although that doesn’t explain why the gap almost disappears in tight markets where negotiation is less a factor than a potential buyer’s price.

The data can help explain the wider gender gap in wealth accumulation at retirement. [Yale School of Management] – Dennis Lynch


Related Articles

arrow_forward_ios
Eric Adams, Rezoning
Adams seeks to juice housing with Midtown rezoning
Adams seeks to juice housing with Midtown rezoning
TRD’s podcast looks at how California could get a deluge of new housing
TRD’s podcast looks at how California could get a deluge of new housing
TRD’s podcast looks at how California could get a deluge of new housing
podcast, housing, mortgage rates, fed
Redfin’s Daryl Fairweather breaks down the housing conundrum
Redfin’s Daryl Fairweather breaks down the housing conundrum
Suburbanites with pitchforks as two hands ripping building plans
Suburban Nimbys oppose more housing. Do they have a point?
Suburban Nimbys oppose more housing. Do they have a point?
Mayor Eric Adams and City Council Speaker Adrienne Adams (Getty Images, iStock, Metropolitan Transportation Authority of the State of New York, CC BY 2.0 via Wikimedia Commons, Illustration by Kevin Cifuentes for The Real Deal)
Budget deal funds relief for property owners, disappoints housing advocates
Budget deal funds relief for property owners, disappoints housing advocates
Competition for Rentals Heats Up in Manhattan, Brooklyn, Queens
Is Airbnb playing a role in NYC’s skyrocketing rents?
Is Airbnb playing a role in NYC’s skyrocketing rents?
Gary LaBarbera, James Whelan, Eric Adams, Tiffany Cabán and Kathy Hochul (Getty, iStock / illustration by Ilya Hourie for The Real Deal)
Council backs off sabotage of 421a
Council backs off sabotage of 421a
President Joe Biden (Getty, iStock)
Biden unveils his answer to high home prices
Biden unveils his answer to high home prices
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...