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Why Women Should Be Investing in Real Estate

Alicia Schneider
Alicia Schneider
March 8th, 2023
Womens day

Real estate can provide investors with a reliable source of passive income, tax benefits, as well as the potential for long-term capital growth. If investing in real estate is a great way to build wealth and financial security, why don’t more women do it?

Studies show that only around 30% of property investors in the US are women. While real estate investing was traditionally seen as a male-dominated field, women tend to have a unique set of skills and perspectives that can be advantageous when it comes to making smart real estate investments.

In this article, we’ll look at the current state of women in real estate investing and show you why women should put more thought and consideration into investing in real estate.

Women and Real Estate Investing: The Numbers

When it comes to selling real estate, women dominate the field. According to the National Association of Realtors, 65% of all realtors are women. When you look further into buying and selling real estate, single women made up 19% of all homebuyers in the US in 2021, compared to just 9% of single men.

So if women are so comfortable buying and selling real estate, why don’t more women begin padding their portfolios with real estate investments?

A study conducted by The Motley Fool on the diversity in real estate investment found that women feel underrepresented. Here are some of the key findings:

  • Over a quarter of women surveyed felt that gender diversity is lacking in the real estate investing community
  • One third of respondents said that they felt their gender affected their investment opportunities and a quarter felt it affected their returns
  • Men are more likely to invest in REITs and women are more likely to invest in rental properties

However, there’s something to be optimistic about: women now are more interested in investing, of all types, than ever before. According to a 2021 study on women and investing released by Fidelity, 67% of women are now investing outside of their retirement funds, representing a 50% increase since 2018. Not only that, the same study shows that not only are more women investing, but they’re actually outperforming their male counterparts in terms of positive returns by 40 basis points.

Now, just imagine if more women harnessed their financial power and turned to real estate investments.

5 Reasons Why More Women Should Invest in Real Estate

While there are financial reasons why real estate is a safe investment bet, there are also a number of qualities and traits that make women strong real estate investors. Here are a few reasons why women should place a greater emphasis on investing in real estate assets.

1. Women are stronger networkers

Real estate investing requires a lot of networking to get you next to the right people who can help you make a deal. Fortunately, women have an advantage over men as their networking skills are often more conducive to what’s necessary for the real estate community.

While men tend to focus on a goal and go straight to the point in asking for what they want, women are more likely to build long-term connections with a personal aspect. This can help them grow their network and introduce them to new investment opportunities down the line as they emerge.

2. Gain control of your money

Real estate investments offer a steady stream of income, allowing women to become financially independent and secure their own financial future. Whether you’re single, in a relationship, or married, it’s always important to secure your own financial future. Separation or divorce can lead to unstable finances if you’re dividing your household income, so having your own nest egg of real estate investments gives you the peace of mind you need in knowing that you have your own reliable stream of income to help you out when you most need it.

Additionally, unlike other forms of investments, like stocks or bonds, real estate is an asset that gives you more control. While other investments might fluctuate more based on market performance, real estate tends to trend upwards, giving you more opportunities to earn and stablize your finances.

3. Income flexibility

Investing in real estate can give women more income flexibility by providing them with passive income streams that are not tied to the hours they have to work at a traditional job. This can include rental income from tenants, profits from flipping properties, as well as tax breaks and appreciation of the property.

Real estate investments also offer investors the ability to diversify their income and build up the potential for long-term wealth. This can be especially important for women who want to prioritize their family and either start one of their own or spend more time at home. Of course, it’s also relevant for women who are simply looking for more time to pursue other interests outside of work or start their own businesses.

4. Invest in your values

While many people believe the stereotype that women may not make good investors since they’re more emotional and not as risk-taking as men, women’s emotions can actually guide their investment decisions.

More women than men prefer to invest in companies or assets that align with their values. Additionally, women are more motivated by doing good with their investments rather than only looking at returns. When it comes to investing in real estate, this creates a real opportunity for women who want to make a difference. By investing in real estate that lines up with their values, such as green infrastructure or housing for marginalized communities, women can not only realize returns but find self-fulfillment in doing something that positively impacts the world around them.

5. Boost your skills and confidence

The education and skills gained from learning how to invest in real estate and by witnessing the results can be an empowering experience. Because investing in general has traditionally been a male-dominated field, many women second-guess themselves before they even try investing in real estate or any other asset. According to research, this attitude has led to less women seeking financial mentorship, with 1 out of 5 men seeking help and only 1 out of 10 women doing the same.

However, by getting equipped with enough information just to start, women can find confidence, both personal and professional, through successful investing. Additionally, there are plenty of women-led communities and resources available to women looking to begin or deepen their real estate investing journey that can also help them improve their investing confidence.

Take Control of Your Investments With Vyzer

Whether you’re investing in real estate or in other assets, gathering the right information is essential to the success of your portfolio. This includes monitoring your assets’ performance so that you can make more informed investment decisions. Vyzer helps you do just that. Track your wealth and portfolio in one simple platform that enables you to gain insights, automate investment administration, and plan your cash flow.