McLean, Virginia-based Freddie Mac has released new consumer research that shows the uphill battle many single female heads of households face toward homeownership, and confidence of ever being a homeowner is low for many.
The research says nearly 60% of single female heads of household renters feel homeownership is out of reach indefinitely. Freddie Mac said its survey confirms this demographic has seen a rise in housing costs and reduced confidence in building wealth over the past year.
“The COVID-19 pandemic has had disparate economic impacts nationwide, particularly women who are heads of their households, such as single moms and caretakers,” said Pam Perry, Freddie Mac’s single-family vice president of equitable housing.
It is not a small demographic. As of 2020, 19.8 million sole-person heads of households were single women.
The pandemic meant many mothers left the workforce during the pandemic for child care, and Freddie Mac reports 75% of women who dropped out of the workforce have not returned.
Over half of this group is considered “cost-burdened,” spending more than 30% of their income on housing. Hispanic and Black single female heads of households are more likely to be cost-burdened.
Reasons for not expecting to be a homeowner include not enough money for a down payment or closing costs, and 75% also believe a mortgage payment would be higher than their rent or they don’t earn enough for a mortgage payment.
Freddie Mac surveyed 2,000 American single female heads of households for its report, which is posted online.