Dig deeper, and you'll find a disturbing reality: while more women own property, men dominate in sole ownership, and the gender pay gap is a major culprit. With Gen Z women earning significantly less than their male peers, and spending habits that don't favour long-term wealth building, it's time for women to flip the script and start investing smarter.
While the surface statistics suggest Australian women are just as likely as men to own property, a deeper look reveals a stark reality. If you consider the statistics on home ownership in Australia, they'll tell you that 68.2% of women are homeowners - a figure marginally higher than the 67.4% for men, that may seem positive. But when you break down the figures, more men had sole ownership of property at 51.9% compared to women at 50.2%. And if you break down the statistics by generation, of Australians aged 18 to 29 (Gen Z +), 51.6% of men own property compared to just 27.3% of women.
In Australia, the gender pay gap sits around 2.5% for employees under 24, increasing steadily until it peaks at an alarming 31.9% for those aged 55-64. While there are varied reasons for an increasing pay gap as employees age, including reduced female participation in the workforce due to caregiving responsibilities, it appears that as soon as women enter the workforce and start earning an income, they are already on the back foot when it comes to saving for a deposit. In fact, Gen Z men earn an average annual income of $83,468, while Gen Z women earn an average annual income of $67,823. When it comes to savings, some 11% of Gen Z women reported having none, while this was the case for just 4% of Gen Z men.
Financial literacy and wealth building
Beyond income and savings, gender differences in financial habits may play a part in the disparity in homeownership between Gen Z men and women. Reports indicate that just 14% of Gen Z women seek out financial advice or research ways to grow their wealth, as compared to 21% of men. These statistics are reflected in our clients at Eda Property, where the majority of our Gen Z clients are men or men with their partners and rarely single women. Investment property ownership reflects this current disparity, with 14.1% of men owning at least one residential investment property, as compared to 12.5% of women.
According to a recent report about Gen Z consumption habits, women are more likely to spend on communal and relational goods (e.g., gift-giving and holidays), while men prioritise saving and investing at younger ages, further widening the gap in financial security. The report also indicated that more Gen Z women use TikTok and Instagram social platforms which promote content that encourages spending (and offer the best ROI for marketers at 26 and 29% respectively), whereas Gen Z men are more likely to use Reddit and X (Twitter) where promotional consumption content is less prevalent and there is a lower ROI at 16% for X (Twitter). If Gen Z women are constantly being told through social media to consume and follow trends such as 'girl math', then it follows that their relationship to money and consumption habits will be impacted.
So where do we start?
Affordability constraints due to the above reasons are the most significant barrier to 61.4% of Gen Z women entering the property market, while 44.3% of Gen Z men more commonly report not being ready to buy as their reason.
My tips for women to become investors
1. Ask for a raise
If you're employed, one of the first things you can do to improve your financial position is to ask for a raise. Australia is currently experiencing a skills shortage across many industries, including, but not limited to hospitality, healthcare and trades which means your role is likely very important, so don't be afraid to ask for a raise. According to a global report from Indeed, 44% of surveyed Australian women had never even asked for a raise. If you don't ask, you'll never know!
2. Don't wait until you have a $100,000 deposit
You can get a foot on the property ladder with a lot less and you probably do have enough to make a start. Get expert advice to guide you towards growth areas with potential that you can afford.
3. Don't be afraid to ask 'stupid questions'
Women are often afraid to ask 'stupid questions', but in my experience as a property adviser, most people have the same questions! And it's valid to have them when you are starting out on your property journey. Ask all the questions to equip yourself with information and knowledge. Don't feel silly for wanting to be more engaged in your financial independence.
4. Build a plan to get into the market
If you're a Millennial or Gen Z experiencing the phenomenon of 'money dysmorphia' and feelings of financial inadequacy or insecurity relative to your peers, you might just need to put pen to paper and see the reality of your financial situation. This could be as simple as a savings plan or a career plan to increase your income or get a second job. I have discovered that clients find planning to be motivating because they can see the trajectory of their efforts and the timeline to reaching their goals.
5. Check and audit your automatic payments
Go through your statements and see where you are sinking money every month. Do you have a streaming service subscription that you never use? We're inundated with subscription services for food, games, groceries, and music - to name a few. Audit your automatic payments and cull any you don't need or use.
6. You don't have to buy your dream home straight away
Unless you have inherited a fortune or bought Bitcoin, chances are, you won't be able to buy your dream home as your first property. Do the research and buy where there are growth opportunities. Property investment is maths not magic.
Image by Freepik
