Data shows that a man is 50% more likely to buy a home without a cosigner than a woman. But not all cities in the US share this home buying imbalance.
One of the worst home buying mistakes you can make is to buy a home you cannot afford. Of course, both you and the home loan originator will work to make sure you can afford your mortgage but sometimes mistakes happen. Data suggests women are more likely to buy a home which limits their long-term financial flexibility than men are. On average women have mortgage-to-income ratios 7% larger than men.
Where women are buying homes in the United States:
1. Santa Fe, New Mexico
287 women bought homes in Santa Fe in 2016 without a cosigner, compared to 269 men. This means women bought homes around 6.7% more than men. Men who bought homes in Santa Fe still had higher average incomes and as a result tended to buy more expensive homes.
The average female who bought a home in Santa Fe had an income of $81,100 and took out a mortgage of $239,500. The average male had an income of $92,400 and took out a mortgage of $255,300. This state is also a good place for women to buy homes, as New Mexico has some of the lowest property tax rates in the country.
2. Santa Rosa, California
With 739 mortgages going to women and 727 going to men, women outbought men by about 1.6%.
Both men and women in Santa Rosa earn large sums. The average single man buying a home without a cosigner earned $126,000 and the average woman in the same context earned $109,300. Both men and women in this metro area may be buying homes they cannot afford. The average mortgage-to-income ratio in Santa Rosa was 3.5 for women and 3.45 for men. Assuming a 20% down payment, this would mean the total home value is 4.4 times women’s average income and 4.3 for men. As we mentioned earlier, this is higher than most experts recommend.
3. The Villages, Florida
The Villages is a retirement community located in central Florida. Men without a cosigner bought homes 1.3% more often than women did.
Income inequality for homebuyers in The Villages is slightly better than the national average. The average home-buying female had an income equal to 89% of the average home-buying male income. While that figure isn’t ideal, it is the second-lowest figure in the top 10.
4. Hot Springs, Arkansas
The effects of income inequality become more apparent in Hot Springs, Arkansas. Men only buy homes 4.5% more than women here. However, the average home a man buys without a cosigner is worth 20% more than the average home a woman with the same background buys.
The average male without a cosigner takes out a home loan worth 1.9 times his income. For a woman that number is 2.4.
5. Springfield, Illinois
Illinois’ capital takes fifth. Here men without a cosigner buy homes 6.2% more often than women without a cosigner. Unfortunately for women, they are not only less likely to be buying homes, they are also likely to be earning less than men. The average man buying a home without a cosigner had an income of $68,200 compared to $53,200 for the average woman.
The average man without a cosigner took out a mortgage of $128,000. For the average woman that number was $110,000.
6. Prescott, Arizona
In Prescott, men without cosigners bought 763 homes while women bought 686 homes. That yields a percent different of 11.2% in favor of men.
The average home-buying woman here took in an income worth around 77% of what the average home-buying man did. The average woman here who bought a home without a cosigner took out a mortgage worth 3.2 times their income. That number is only 2.6 for men.
7. Lawrence, Kansas
The average home-buying woman in Lawrence has an income of $66,200 and takes out a mortgage of $158,500. Men show similar financial prudence. They have a mortgage-to-income ratio of 2.1.
However, Lawrence men are more likely to buy homes than women: In 2016, men without cosigners took out 333 home loans, compared to 299 for women.
8. Napa, California
In Napa, California we find one of the widest differences between women’s incomes and men’s incomes. The average man who bought a home without a cosigner earned $170,000. For women that number is $121,000. On average women buying homes without a cosigner in Napa earned only 71% of what men buying homes without a cosigner earned.
Napa homes are also expensive, and both men and women may be stretching their budgets thin to afford homes in here. The average woman took out a mortgage worth 3.42 times her income. The average man took out a mortgage worth 2.96 times his income.
9. Philadelphia, Pennsylvania
Philadelphia is known as one of the more affordable big cities in the country. Men without a cosigner were about 13% more likely to buy a home than women without a cosigner in the Philadelphia metro area. Women buying homes here earned about 79% of what men buying homes earned.
10. Rochester, Minnesota
One of the best places for working women is also one of the places where women are buying homes the most. Of the 1,735 homes bought in Rochester without cosigners, 814 went to females and 921 went to males.
This city also has the lowest gender pay gap in the Top 10. This has led to women and men taking out similar-sized home loans. The average women took out a mortgage of $161,000 while the average man took out a home loan worth $171,000.