One of the major milestones in most people’s lives is owning a house. A study says that an average American couple takes nearly six to seven years to earn and save enough for a home purchase downpayment. When it comes to single men and women, it takes up to eleven years. When it comes to married people, they have the advantage of having two sources of income and hence, purchasing a house becomes easier. In such cases? How can single people afford homes?
The Why
First off, one must understand why it is difficult for singles to afford homes. After knowing it, one can find ways to overcome these issues. Singles have a major home affordability hurdle. If you consider the average single homebuyer’s affordability, it is at $176,000 which makes only half of the American homes available. On the other hand, if you look at what couples can afford, you will see a staggering eighty percent of the American homes affordable for them.
More than single men, single women face greater problems when it comes to home buying. Due to the gender wage gap, women receive a lesser amount of remunerations and salaries for any given job role when compared to men. In such cases, it becomes highly unlikely for females to own a house. The U.S Census Bureau’s study found that the working women tend to earn only 80% of what men earn for the same job roles.
Lower salaries amount to smaller budgets and thereby leading to single women affording a lesser percentage of houses overall. As a matter of fact, single women tend to own only 39% of the homes whereas single men tend to own 52%. Zillow analyzed the top housing markets and metropolitan cities. According to their analysis, in any given market, single men could own more homes than single women.
When this gender discrimination and the discrepancy is taken into consideration, Cincinnati and Ohio were worse. The difference between men and women’s affordability is greater than 40%. On the contrary, the least difference was noted in San Jose where the difference was just 3%.
The How
After knowing all these facts, instead of getting discouraged, you must look towards all the steps you can take to end up owning a house successfully. Start off with an assessment of what you can afford and what your earning capability is. The basic assessment helps you understand how much payment you can make per month for your mortgage. Apart from this, you must also set aside a small amount from your paycheck for maintenance and repairs.
Also, make the most out of the monthly payment systems. Use mortgage calculations and find out how much payments you need to make. Accordingly, plan a house and don’t proceed with the first deal you are offered. Take your time, talk to a financial planner, mortgage professional or a trusted friend.
The Don’t
Finally, never take debt that you cant repay. Stay away from credit card debt and maintain a very good credit score. With a better credit score, you receive considerably better mortgage options and rates. Overall, it increases your likelihood of owning a house.
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