Melton CoreLogic research has revealed a disparity in property ownership rates between the sexes. The research suggests that women are less likely than men to own property, which can impact their overall financial wellbeing and their ability to afford a comfortable retirement. So what factors cause this gender property gap, and how can women prepare for a better financial future?
Studies repeatedly show that achieving financial wellbeing is one of the keys to female empowerment. As well as improving the lives of individual women, it also has wide-reaching benefits for society and the economy. Yet even in relatively wealthy countries like Australia women still haven’t reached financial equality with men. Property ownership is a major contributor to household wealth, and the residential housing market is valued at $7.9 trillion in Australia and more than $1.3 trillion in New Zealand.
Shared property ownership between a man and a woman is the most common ownership structure in both Australia and New Zealand. However, when comparing either solo or joint property ownership rates, women tend to lag behind men across the board. Australians and New Zealanders who don’t own property are missing out on a valuable source of financial security. According to CoreLogic’s research, property accounts for more than half of the average Australian household’s wealth.
So what’s holding women back? CoreLogic’s research suggests that the gender pay gap may be the single greatest barrier to property ownership.
When women are paid less than their male counterparts, it becomes more difficult to save for a house deposit. In fact, based on a typical Australian’s average weekly full-time earnings, it could take a woman 10 months longer to save a 20% deposit than a man. And for single women on lower incomes, it can be even harder to gain a foothold in the property market. There are many drivers behind the gender pay gap. Industries that are traditionally dominated by women tend to attract lower rates of pay, such as childcare, administration and cleaning. Women are also more likely to be engaged in part-time employment or to take time out of the workforce for unpaid care roles. For many women, the end result is a lower earning potential over the course of their working lives. The reality is that it may take decades to resolve the larger societal issues that form obstacles to female property ownership, like the gender pay gap and the undervaluing of domestic labour. But in the short term, women can benefit enormously from education and coaching around the factors that contribute to financial security. And for women on single and low incomes, there’s an even greater need for guidance and support around saving and investing.
Financial institutions may be able to assist – and the first step could be to truly understand the specific challenges their female customers face. There are also opportunities to provide information and advice that will help people of different demographics, backgrounds and circumstances to enter the property market.
We know that education is the key to boosting overall financial literacy. Naturally, people who are encouraged to form positive financial habits early in life, like budgeting and saving, will have greater confidence when it comes to following more long-term savings strategies tailored to their specific situation and needs.
That’s why we all need to do our part in prioritising financial literacy and helping girls engage with their finances from a young age. This will give them the tools they need to make wise financial decisions throughout their lives, so they can improve their financial wellbeing and set themselves up for a comfortable retirement.
Source: Corelogic
