The Gender Gap in Real Estate Investment: Insights from CoreLogic’s 2024 Women & Property Report

As New Zealand approaches International Women’s Day, a recent analysis by CoreLogic has shed light on a significant disparity in property investment between genders. The 2024 Women & Property report reveals that female-only real estate investors are lagging behind their male counterparts in wealth creation through property. This article delves into the findings of the report, exploring the implications of these trends and the factors contributing to the gender gap in property ownership.

Key Findings of the Report

The CoreLogic report, which provides an update on home ownership trends in New Zealand as of January 2024, highlights a notable difference in ownership rates between men and women. While female-only owner-occupier rates stand at 22.9%, slightly higher than the male-only figure of 20.7%, the landscape shifts dramatically when it comes to investment properties. The report indicates that female-only ownership of investment properties has fallen to 21.6%, compared to a significantly higher 26.3% for male-only ownership.

Kelvin Davidson, the report’s author and chief property economist, points to several factors that may explain this disparity. He notes that the gender wage gap, estimated at around 9%, allows men to accumulate wealth more quickly, facilitating earlier investments in rental properties. Additionally, Davidson suggests that financial literacy may be higher among men, giving them a greater awareness of investment opportunities.

Ownership Trends Across New Zealand

The report reveals that 22.2% of homes across New Zealand are owned exclusively by one or more females, slightly trailing behind the 22.7% owned by males. The remaining 55.0% of homes are under mixed-gender ownership. The 50-basis point gap between female-only and male-only ownership translates to fewer than 8,000 properties, indicating a subtle but persistent trend.

Interestingly, the report shows a slight shift towards single-gender ownership, with mixed-gender ownership decreasing by 50 basis points since early 2023. This trend suggests that while the changes are minor, they reflect a growing recognition of the importance of gender-specific ownership patterns.

Regional Variations in Female Ownership

Examining regional trends, the report identifies four areas where female-only ownership rates exceed the national average. Gisborne leads with a rate of 24.9%, followed closely by Auckland at 23.7%, and Wellington and Manawatu-Whanganui. Conversely, regions such as the West Coast and Tasman-Nelson-Marlborough report the lowest female-only ownership rates.

Davidson speculates that the availability of more affordable apartment living options in urban centers like Auckland and Wellington may facilitate higher female ownership rates, particularly for those facing challenges in saving for deposits and managing mortgage payments. In contrast, areas like the West Coast, which are predominantly focused on mining and farming, may attract fewer female-only property owners.

The Importance of Property Ownership

Understanding the dynamics of property ownership is crucial, as real estate represents a significant portion of household assets. According to Stats NZ, owner-occupied dwellings accounted for 43% of total household assets at the end of 2021, up from 38% in 2018. This underscores the importance of property ownership in wealth accumulation and financial security.

Davidson emphasizes that tracking home ownership rates across different demographics is essential for fostering a more inclusive housing landscape. The gender wage gap and financial literacy disparities are critical factors that contribute to the challenges women face in accumulating assets, particularly in terms of building deposits for home ownership.

Conclusion

The findings of CoreLogic’s 2024 Women & Property report highlight a pressing issue in the realm of real estate investment: the significant gap between male and female property ownership. As New Zealand continues to navigate the complexities of its housing market, addressing these disparities is vital for promoting equity and inclusivity. By understanding the underlying factors contributing to the gender gap in property investment, stakeholders can work towards creating a more balanced and supportive environment for female investors.

For those interested in exploring the full report and its findings, the CoreLogic 2024 Women & Property report is available for download here.

As we celebrate International Women’s Day, it is crucial to recognize the importance of empowering women in real estate investment, ensuring that they have equal opportunities to build wealth and secure their financial futures.