The 2023 housing market will be different than what we’ve seen over the past two and a half years. Instead of frenzied competition, home sales activity will be more deliberate. Buyers will have more room for negotiation and sellers will have to reset expectations on price. While there are some remaining headwinds, there are favorable demographic fundamentals underlying the market.
One of the biggest demographic trends that will impact the housing market in 2023 and beyond is the rise of the female buyer and seller. Single women surpassed single men in homeownership back in 1985. In the subsequent four decades, more women have been going into homeownership solo.
The National Association of REALTORS®’ most recent profile of homebuyers and sellers demonstrates the important and growing role women play in the U.S. housing market. Single females account for the second-largest share of homebuyers in the U.S. after married households. About one in five first-time buyers last year was a single female buyer.
While women are often looking for the same things as other groups in the market, there are some ways in which this demographic is different.
- More women have to delay their home purchase. It has become increasingly challenging for first-time homebuyers to save for a down payment, but women delay a home purchase more often than single men or couples. The median age of a single female first-time buyer is 38, compared to 36 for all first-time buyers. More than one in 10 single female buyers said saving for a down payment was difficult. Credit card debt is a bigger issue for single female buyers than it is for other buyers. Forty-two percent of single female buyers said credit card debt caused them to delay their home purchase, compared to 34% of all buyers.
- Women homebuyers may be more price sensitive. The median income of single female first-time buyers was $51,400 in 2022, compared to $64,100 for single males, and $79,200 for married couples who are first-time buyers. At least partially as a result of their lower incomes, single women tend to buy smaller homes. One-third of single female first-time buyers purchased a home that was 1,500 square feet or less, compared to 18% of all first-time buyers.
- Home means proximity to friends and family for many women. More than four out of 10 single female buyers said that convenience to friends and family was a factor that influenced their neighborhood choice.
Single females are also an important group of home sellers, accounting for 16% of all sellers in 2022. That share is only going to get larger. Moving due to retirement is the second most commonly cited reason for selling a home (after moving to be closer to friends or family). The large baby boom population is moving into retirement age, and because women tend to outlive men, there will be greater numbers of single women in retirement age who will be home sellers in the near future.
The most successful real estate agents and brokers are always looking for ways to meet the changing needs of homebuyers and sellers, which will increasingly mean addressing the unique needs of women in the market.
