Listen: Planet Money: Single Women Are Shortchanged In The Housing Market
"Buying or selling a home is difficult. Even if you are very savvy with money but academics have discovered. It's even harder if you're a single woman. Sally Herships Stacey Vanek Smith from our daily economics. podcast the indicator from planet money. Explain what's going on. A new study just came out of Yale School of Management. It looks at how well single women do versus single men when they buy home or when they invest in the housing market housing is probably the largest purchase. It's made by most Americans. That's Kelly shoe. She teaches finance at the Yale School of Management and she says we invest more in our homes than in the stock market so when gene her colleague Paul Goldsmith. Pinkham recently bought houses around the same time they were paying a lot of attention to the transactions. Kellyanne Paul ended up looking at data data from over fifty million housing transactions. And here's what they found. On average single women buy houses for two percent more than single men but they also sell those houses for two percent. Less women are losing about one thousand. Three hundred seventy dollars per year relative to men because they tend to buy the same house at a higher price and sell for a lower price just knowing the gender of the other party can affect the sale according to Kelly shoe when women make low offers the are treated differently differently than men who make the same low offers. It is an unfortunate consequence of perhaps our culture and the fact that We may I expect that women are more willing to share the pie and share the surplus from negotiation. This is called gender expectations. It's the possible that women are expected to be nicer to be more generous to be more thoughtful. It's the idea that everyone should benefit from. The sale of this House both buyer higher end seller. But no matter what the reason is that is not exactly what happens. When single women houses remember single women buyers they are already spending more buying it higher prices and they also sell for less and guess who they give the biggest discounts to we find that the largest richest discounts tend to occur. When it's a female seller and mail buyer single? Women also do worse when it comes to. What is called market timing? Kelly says that could be because single women tend to be more tied down and in case. You're wondering Kelly and her co author accounted for all kinds of things education. An income age type of home listing agent ethnicity. They adjusted for all of these things and the results stuck so this is kind end of distressing but there was a silver lining there some good news depending on how you characterize a silver lining women on average do better when they are transacting with other women. So there's a tip for single women if you are buying or selling a house like look at doing business with a woman you might get a better deal and Kelly had some other tips. She says single single women are able to. They should try to think long term to become long-term investors because every time a single woman buys or sells a house. She is likely to lose two percent cent compared to a single man. Stacey Vanik Smith Sally Herships N._P._R. News."