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What is the Gender Housing Gap?

Most people have heard of the gender pay gap, but far less attention is paid to the gender housing gap, although it is a growing problem affecting both renters and potential homeowners.

Research by property platform Boomin, released earlier this year, found there is a gender affordability gap in house prices of 3.7 years across the UK. In other words, it takes women “on average 3.7 years longer to climb the real estate ladder than their male counterparts,” she explained The times.

The Income Gap

Boomin’s research compared average house prices based on current market values ​​to the median gross annual income of male homebuyers (£38,061) and female homebuyers (£27,120) in the UK.

The study found that the average British man needs 7.3 times his annual salary to cover the current average property price of £278,120, while the average British woman needs 11.1 times his average annual salary to cover the same property costs.

The researchers concluded that it takes the average British woman almost four years (3.7 years) longer than her male counterpart to earn enough to buy a property for the same price.

Gap differs across the UK

The study found that the gender housing gap varies across the country and is particularly pronounced in the capital. The London borough of Kensington and Chelsea emerged as the worst-performing area of ​​the UK housing market for women, with a gender affordability gap of 23.9 years.

Rother in East Sussex, Mole Valley in Surrey and Rutland in the East Midlands were all in the top four worst places in the UK for female homebuyers.

Inverclyde, near Glasgow, where the average house price is £123,884, has the closest gap: it would take a woman just half a year longer to buy a house in this area at an average price than its male counterpart.

Problem for tenants too

Studies show that the gender housing gap also exists in the rental sector, with women typically spending a higher proportion of their wages on housing than men.

In January, real estate website Spareroom.com surveyed 11,130 users to learn how much of their income they spent on rent. The study found that “almost one in five women (19.5%) spends more than half of their net income on rent, compared to 14.4% of men,” reported Vicky Spratt, the i news siteapartment correspondent.

And with the average monthly rental price in the UK increasing “by 2% in the 12 months to January 2022 compared to 1.8% a year ago”, this gender housing gap is likely to widen further.

“Renting, let alone buying a home, is out of reach for many women, especially disabled or women of color who have even lower median incomes,” said Dr. Sara Reis, associate director and research director of the Women’s Budget Group, to Spratt.

Affects mostly young women

“Not surprisingly,” SpareRoom’s research also found that “almost 60% of the women who are struggling the most are in their 20s,” Spratt said in an article for Refinery29.

“That last point is crucial,” she added. Your 20s should be when “you’re figuring out your friendships, your career, and your romantic relationships,” but “what happens to your financial well-being during those developmental years is just as important.”

And this problem is not limited to the UK property market. A March study by US real estate search engine Zillow found that 18% of America’s housing market is affordable for men but out of reach for women because of the US Gender pay gap.

“Home ownership is the dominant form of wealth accumulation for most Americans,” said Zillow economist Nicole Bachaud in an article published on Yahoo Finance. “Women not only start from the back, but fall further behind with each passing day as homes bring justice.”

https://www.theweek.co.uk/arts-life/property/956570/what-is-the-gender-housing-gap What is the Gender Housing Gap?

Fry Electronics Team

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