Key Highlights
- Motley Fool’s Millionacres just released its study on how women and men invest in real estate
- Study found that women and men invest using similar strategies
- Owning rental property more popular with women
- Buying REITs more popular with men
Millionacres, the real estate investment division of The Motley Fool, recently released its study on how women and men invest in real estate. This Millionaicres study particularly focused on how gender and racial diversity impacted real estate investing decisions and results.
Right off the bat let’s quote 2020 statistics on membership in the National Association of REALTORS® (NAR). According to NAR, 64% of all REALTORS® are female, 10% are Hispanics/Latinos, 6% are African American and 5% are Asian/Pacific Islanders.
No statistics are available at this time about how diverse real estate investing is by gender and/or race however, respondents to this survey indicated that real estate investing is “overwhelmingly white and male.”
Here are just a few of Millionacres’ key findings:
- Men are more likely to buy REITs
- Women are more likely to buy rental property
- One-third of women feel their gender affects the investing opportunities they’re offered and almost one-quarter feel their gender affects their returns
- A study by Goldsmith-Pinkham and Shue shows that women earn an average of -1.5 percentage points less than men per year on housing returns. This gap is -8 percentage points when a reasonable rate of leverage is assumed.
- One-third of non-white respondents feel their race affects the investing opportunities they’re offered and over one-quarter feel their race affects their returns
- The Goldsmith, Pinkham and Shue study indicates the same results when racial diversity is the subject.
Fine-slicing the real estate investing vehicles women and men use, Millionacres found these results:
- REITs
- 32% women
- 38% men
- Rental property
- 33% women
- 5% men
- Real estate crowd-funding
- 13% women
- 12% men
- Commercial real estate
- 6% women
- 5% men
- Second/vacation home
- 1% women
- 9% men
- Real estate stocks
- 8% women
- 9% men
- House flipping
- 9% women
- 5% men
- Raw land
- 2% women
- 5% men
- Real estate mutual funds
- 1% women
- 5% men
Thanks to The Motley Fool’s Millionacres.
