Women lag behind men when it comes to home ownership

author-avatar By on March 08, 2021
Women lag behind men when it comes to home ownership

Australian women have lower rates of property ownership than men, as a new report highlights the impacts of the gender pay gap.

CoreLogic's inaugural Women and Property: State of Play report, released on International Women's Day, found 26.2% of all properties in Australia are exclusively owned by women.

That's compared with 29.9% of men. 

CoreLogic's Head of Research Eliza Owen said the report highlights evidence between the gender pay gap and the gender wealth gap.

"Unsurprisingly, the report found that rates of male property ownership are generally higher than women, but with important distinctions that highlight the relationship between the gender wealth gap and the gender pay gap, and have implications for institutional response," Ms Owen said.

"CoreLogic estimates Australia's residential real estate to be worth over $7 trillion.

"Given there's a high level of equity held in real estate, if you don't own property, that's a big source of household wealth and security you don't have access to."


Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^

Rates correct as of October 18, 2021. View disclaimer.


The report found the most common type of property ownership was 'mixed gender' ownership, where both men and women had ownership of the property, which accounted for 43.9% of properties in Australia.

"That speaks to affordability constraints and infers you often need dual incomes to achieve property ownership," Ms Owen said.

"The other element of this is that lone households would have less success getting into the property market. What's important about that, when it comes to women and real estate, is that women make up over 60% of either single-parent of lone adult households.

"Yet at the Australia-wide level, sole property ownership among women is less than their male counterparts, which means women are over represented in lone households but they’re underrepresented in property ownership.

“The core of this analysis and its findings is that it’s all about wealth inequality and income inequality, and that doesn’t just span between men and women, it spans among women as well - including those that are single, sole parents or part time workers.” 

See also: How to get a home loan on a single income

The report found that women are more likely to own a home in capital cities, particularly in affluent suburbs, than they are in regional areas where men are more likely to own property.

CoreLogic24

Source: CoreLogic

The highest rates of exclusively female home ownership was in the eastern suburbs of Sydney, where 34.8% of all properties were owned exclusively by women compared with 31.7% of men.

In Melbourne's inner south, 32.6% of property is exclusively owned by women and 27.6% are owned by just men. 

Ms Owen said the figures show how the gender pay gap can impact access to home ownership.

"Where women have higher incomes, they may have a greater propensity to buy property, in some instances even outpacing property ownership rates of males," she said. 

"This compliments previous research findings on this topic, which have shown that in some instances, women actually have a greater tendency for property ownership than men, given equal income."

See also: Women's guide to managing money at every age

Women taking longer to save for their deposit 

The report found that it would take an additional 10 months for women to save a 20% deposit on the median Australian dwelling value, based on average weekly full time earnings data. 

"We know there's a gender pay gap, and that income is an important determinant of access to real estate ownership."

According to the Australian Bureau of Statistics (ABS) the gender pay gap is currently sitting at 13.4%.

But Milena Malev, CoreLogic International’s GM Financial Services & Insurance Solutions, says the true gender pay gap in Australia is actually closer to 30%.

"It’s also important to note that Australia measures the gender pay gap by average weekly earnings for full time employees, however women represent 67.2% in the part time workforce and only around 37.9% of the full time workforce," Ms Malev said.

"This suggests the true gender pay gap in Australia is actually closer to 30% because of the different composition of men and women in the labour force.

"The implications of this are vast. It means men get access to housing sooner, they have more time in market, and therefore have greater wealth accumulation as well."

With property ownership being regarded as a pillar of retirement, the gender wealth gap means women are at a greater risk of poverty in retirement.

"This wealth gap becomes a particular challenge around retirement, and it’s well documented that if you still have rental or mortgage costs at the time you retire, then you have a much higher incidence of falling into poverty," Ms Malev said.


Photo by Soheb Zaidi on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Latest Articles

author-avatar
Emma Duffy is Assistant Editor at Your Mortgage and  Your Investment Property Mag, which are part of the Savings Media Group. In this role, she manages a team of journalists and expert contributors committed to keeping readers informed about the latest home loan and finance news and trends, as well as providing in-depth property guides. She is also a finance journalist at Savings.com.au which she joined shortly after its launch in early 2019. Emma has a Bachelor in Journalism and has been published in several other publications and been featured on radio.

Collections:

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree to the Savings Privacy Policy