New report underscores gender gap in NZ property investment
CoreLogic’s latest Women & Property report, released in conjunction with International Women’s Day 2024, has uncovered a significant gap between female and male real estate investors in New Zealand.
Despite higher owner-occupier rates among women, their presence in the investment property sector falls behind that of men.
The CoreLogic report showed that female-only ownership of owner-occupied properties stands at 22.9%, surpassing male-only ownership rates of 20.7%. However, when it comes to investment properties, female-only ownership dips to 21.6%, while male-only ownership climbs to 26.3%.
The CoreLogic data also showed that female-owned properties have a median value of $650,532 compared to $675,975 for male-owned properties.
Kelvin Davidson (pictured above), CoreLogic's chief property economist and the report's author, identifies the gender wage gap and differences in financial literacy as crucial factors contributing to the discrepancy.
“The gender wage gap means that, in theory at least, males can build financial wealth a bit faster, allowing for earlier and more investment in rental properties,” Davidson said. “There is some evidence that financial education and literacy is higher among males too, potentially giving them more awareness of different options.”
Property ownership trends and regional differences
The ownership landscape across New Zealand exhibited regional variations, with certain areas like Gisborne (24.9%) and Auckland (23.7%) seeing higher rates of female-only ownership, attributed in part to more affordable living options such as apartment housing.
Conversely, regions with a focus on mining and farming like the West Coast showed lower rates of female ownership.
Surprisingly, In the notably pricier Tasman-Nelson-Marlborough region, female-only ownership surpassed male-only, at 20.2% compared to 19%.
Women lead in property ownership over men in Gisborne, Wellington, Hawke’s Bay, Northland, and Bay of Plenty. Ownership rates between women and men are equal in Canterbury and Manawatu-Whanganui, CoreLogic reported.
The importance of property ownership
Property ownership remains a critical component of household assets, with Stats NZ reporting a significant portion of household assets tied to real estate.
Davidson stressed the role of homeownership in providing security and satisfaction, pointing out that the gender pay gap, estimated at around 9%, hampers women’s ability to accumulate assets and enter the housing market.
Addressing the disparities
Understanding the disparities in property ownership is vital for developing strategies to create a more inclusive and equitable housing landscape.
“Factors like the gender wage gap, estimated at around 9%, have been identified as potential contributors to the delay in women accumulating assets, especially when it comes to building a deposit for home ownership,” Davidson said.
“Understanding these dynamics is crucial for addressing disparities and fostering a more inclusive and equitable housing landscape.”
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