Single moms face a hard time buying homes

Only a little over a third of single mothers across the US could afford homeownership due to a shortage of affordable homes for sale, according to a Redfin report.

The report showed that 31.1% of single mothers nationwide owned homes in 2017, unchanged from 2016 and down from 35.5% in 2010. The figure was well below the overall homeownership rate for of 63.9%. Over the same period, the national median price soared by more than 40%.

"Although more single moms have entered the workforce since 2015, thanks in part to a growing economy, single mothers haven't yet been able to gain increased wealth through equity from homeownership," said Redfin Chief Economist Daryl Fairweather. “That's because, in many expensive metros, single moms aren't able to access the benefits of homeownership due to a lack of affordable homes for sale.”

The metros with the highest homeownership rates among single moms tend to be budget-friendly. McAllen, Texas, where an average home sells for $165,000, has the highest rate of homeownership among single mothers, with 46.6% owning homes. Salt Lake City was next with 41.7%, followed by Grand Rapids, Mich., with 41.5%, and Minneapolis with 40.3%. All of the top 10 metros for single-mom homeownership, except for El Paso and San Antonio, have higher-than-national overall homeownership rates as well.

The four metros with the lowest rates of single-mom homeownerships are in California, including Fresno (20.5%), Los Angeles (20.7%), San Diego (22.4%), and Bakersfield (22.6%). These metros have an overall homeownership rate below the national rate, according to the report.

"In areas like Salt Lake City and Minneapolis, single moms are better able to afford a home without a dual income or financial support from a partner,” Fairweather said. “Beyond being a primary source for building wealth, owning a home can provide some necessary stability for children because homeowners have predictable monthly mortgage payments and don't have to worry about a landlord raising rent or selling their home."

MBN

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