Women and Company Survey Reveals 76 Percent of Women Don't Own a Home

Women name high prices as the primary barrier to homeownership
RISMEedia
According to The Commerce Department, new housing sales in April fell 11.8% percent below March sales, which may indicate a slowdown in the U.S. housing market. A related online survey conducted by Women and Company, revealed that 76% of women respondents do not own a home.

Survey respondents cited the following reasons:

(1) they were unwilling or unable to buy (20.03%); (2) their current living expenses are too high (17.11%); and (3) the timing isn't right due to their life circumstances--job change, divorce, etc. (16.33%).

"Buying or selling real estate is a personal decision. Before you take action, examine your reasons for purchasing, your time horizon, and your fixed and discretionary expenses," said Lisa Caputo, President and CEO of Women and Company, a membership program from Citigroup that provides financial education and resources for women.

Women respondents also said they didn't own a home because they were saving for other goals--retirement, children's college education, etc. (16.33%); or that they preferred to rent than own (3.42%). Women and Company conducted the online survey in October 2005.

Women considering purchasing a home should consider:

1. Why are they buying or selling? If they are considering purchasing a home because of pride of ownership, reasonable appreciation, tax advantages, "forced" savings, go ahead and buy. A questionable reason to buy is to ride the real estate wave and make money in the short term.

2. How long do they plan to stay in your home? If they are going to own your home for less than three years, they may not want to purchase because owners do not typically "break even" on a purchase in less than three to four years. When selling, they have to remember that if they’re selling "high," chances are they’ll be buying "high," unless they plan to downsize.

3. Can they afford this home? Be realistic. They don't want to be house-poor, nor do they want to find themselves over-extended. If they are sensible about their home purchase, they can weather changes in the market and not have to sell at a less-than-perfect time.

While there are no crystal balls when forecasting the future of the real estate market, watching market activity, inventory and prices in their local area and determining their motives for buying will help ensure they make a solid decision that meets their needs.