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Throughout history, women have had to push to achieve parity with men in many arenas, and housing is no different. Here is an overview of the changes and trends in recent history that helped shape housing and mortgage opportunities for women.
1960s
The passage of the Fair Housing Act of 1968 prohibited discrimination in real estate on the basis of sex, race, religion and a number of other protected classes. Many more women also began entering the workforce in this decade, encouraged by the Equal Pay Act of 1963, which barred pay discrimination on the basis of sex. Women were also able to open their own bank accounts for the first time in the ‘60s, and would continue to see progress towards equality in the decades to come.
1970s
Although women had varying degrees of property rights and financial freedoms throughout history, it was technically legal for banks to refuse loans and credit to unmarried women (or require a husband’s permission for married applicants) until the Equal Credit Opportunity Act was passed in 1974. This opened the door for single women to become property owners more easily, even if they couldn’t pay cash. Coupled with fair housing protections, this legislation also meant that banks could not ask women whether they are pregnant or planning a family, or make assumptions that women wouldn’t return to work after maternity leave.
1980s
Average 30-year mortgage rates reached an all-time high in the ‘80s, and more Americans favored putting off getting married in pursuit of education. While legislative changes were less profound, cultural shifts laid the groundwork for the women’s homeownership trends we’re seeing today. By 1981, there were more single women homeowners (11 percent of purchases, according to the National Association of Realtors) than single men (10 percent), and single women have outpaced single men in purchases every year since.
The pay gap also narrowed significantly during this decade. In 1980, women earned 64 percent of men’s wages — that share rose to over 75 percent 10 years later, according to Pew Research Center.
1990s
Better educational opportunities and higher earning potential helped the ranks of women homeowners expand over time, explains Jung Choi, a senior research associate at the Urban Institute. By the ‘90s, nearly a third of households were headed by women.
“That’s one factor that has changed a lot over time,” Choi says. “That is also in line with the income gains and the education gains.”
2000s
Mortgage rates fell through the 2000s, especially in the aftermath of the housing bubble burst. Meanwhile, women’s homeownership rates kept rising, though that may be due in part to more families identifying the woman as head of household when filing taxes, Choi says.
2010s
Women’s homeownership gains aren’t a straight upward line — the single women homeownership rate was only at 15 percent in 2014, according to NAR. It has since recovered somewhat, and many women own property within marriages, which further boosts women’s homeownership rates.
In the years following the Great Recession, women also tended to have lower foreclosure rates, whether they were single, divorced, separated, widowed or married heads of household, according to ATTOM Data Solutions.
2020s
As of 2021, 19 percent of homebuyers were single women, and the number of households headed by women, according to an Urban Institute analysis of tax returns, sat at a solid 60 percent.
Women still haven’t achieved full pay parity in the U.S., however, and often single women borrowers receive higher mortgage rates than single men. Paradoxically, women are less likely to default on their mortgages compared with men, the Urban Institute reports.
“The single parent female-headed family has the lowest homeownership rate of any group in the country right now,” Choi says, and for women of color especially, that represents a major roadblock to financial and housing stability.
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As an expert in housing and mortgage trends, I've closely monitored the historical developments that have shaped opportunities for women in the housing market. My extensive knowledge is grounded in a comprehensive understanding of legislation, cultural shifts, economic factors, and societal changes that have influenced women's homeownership over the decades.
The Fair Housing Act of 1968 marked a pivotal moment in the fight against discrimination in real estate, prohibiting biases based on sex, race, religion, and other protected classes. This period also saw an influx of women into the workforce, spurred by the Equal Pay Act of 1963. Notably, the '60s witnessed women gaining the right to open their own bank accounts, setting the stage for increased financial independence.
Moving into the 1970s, the Equal Credit Opportunity Act of 1974 played a crucial role by making it illegal for banks to deny loans or credit to unmarried women. This legislation dismantled barriers for single women to become property owners and ensured fair treatment in financial transactions. Concurrently, fair housing protections prevented discriminatory practices, such as asking women about pregnancy or making assumptions about their work plans after maternity leave.
The 1980s witnessed a cultural shift, with more single women becoming homeowners, outpacing single men in purchases. Economic changes, including narrowing pay gaps, contributed to this trend. By the 1990s, women's homeownership continued to rise, with better educational opportunities and increased earning potential playing significant roles.
The 2000s saw fluctuating mortgage rates, with a notable increase in women's homeownership rates. This trend, however, may be influenced by factors such as changes in household structures and how women are identified as heads of households during tax filing.
In the aftermath of the Great Recession in the 2010s, women maintained lower foreclosure rates, regardless of their marital status. As of 2021, 19 percent of homebuyers were single women, and households headed by women reached 60 percent, indicating substantial progress.
Despite these advancements, challenges persist in the 2020s. While women's homeownership rates have improved, achieving full pay parity remains elusive. Paradoxically, single women borrowers may face higher mortgage rates than their male counterparts. The Urban Institute reports that single-parent, female-headed families, particularly among women of color, still grapple with the lowest homeownership rates, representing a significant obstacle to financial and housing stability.
For a deeper understanding, one can explore related topics, such as the impact of the student loan crisis on women, strategies for purchasing a house with a low income, and tips for securing the best mortgage rates.
