Understanding the Gender Property Gap and What it Means
What is the gender property gap?
At first glance, it may seem like women are doing well in the property market. Overall, women do have a slightly higher rate of property ownership than men. However, when we dig deeper, a different picture emerges.
Young women are falling behind
Among Gen Z Australians (those under 30), there is a staggering 24.3% property ownership gap between men and women. This means that significantly more young men own homes than their female counterparts.
Investment property gap
Men are more likely to own investment properties. This translates into the potential for greater long term wealth accumulation through property.
Property values and debt
On average, women tend to own less valuable properties and may carry slightly higher debt levels relative to their assets. This can create a financial disadvantage over time.
Why does this gap exist?
Several factors contribute to the gender property gap.
Here are some of the key ones:
The gender pay gap
Unfortunately, the gender pay gap persists in Australia. This means, on average, women earn less than men for comparable work. The Workplace Gender Equality Agency reports a national gap of 14%. Lower earnings make it harder to save for a deposit, qualify for a mortgage and afford ongoing housing costs.
One of the most notable discrepancies in residential property ownership was actually by income rather than gender. When asked about personal, annual pre-tax income, respondents earning less than $100,000 per annum had a home ownership rate of 61.4% compared to 86.6% of those earning more than $100,000.
Risk appetite
Some studies suggest that women may be more risk averse when it comes to large financial decisions such as investing in property. This can be influenced by a multitude of factors including societal expectations and financial education.
Financial knowledge gap
There is evidence of a financial literacy gap with men, on average, demonstrating slightly higher knowledge about financial concepts. When navigating the property market, this can impact confidence and decision making.
What does this mean for you?
The gender property gap highlights that systemic inequalities can create financial hurdles regardless of your hard work and dedication.
However, awareness is the first step towards mitigating these challenges.
Here’s how understanding this gap can empower you:
Planning ahead
If you’re a young woman aspiring to homeownership, start planning and saving as early as possible. Every dollar saved brings you closer to your goal.
Exploring investment strategies
Even if property ownership feels out of reach right now, consider other investment options. Building a diverse portfolio can help create long term wealth.
Building financial knowledge
Seek out resources to enhance your financial literacy. Staying subscribed to our industry updates is a good starting point.
We’re here to support you
Our role as your mortgage broker goes beyond finding you a loan. We’re committed to being your finance research partners.
If you have concerns about how the gender property gap might impact your finance and property goals, please feel free to reach out.
Together we can develop strategies to help you achieve your property dreams.
If you'd like help with assessing your personal and financial situation, as well as comparing the loans in the market to see if you're truly getting the right deal for you, then call Bob Malpass now on 0431 862 136, email [email protected]
Thanks for reading.
Bob
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