The Gender Gap in Housing Returns

78 Pages Posted: 17 Apr 2020 Last revised: 10 Feb 2022

See all articles by Paul S. Goldsmith-Pinkham

Paul S. Goldsmith-Pinkham

Yale School of Management

Kelly Shue

Yale School of Management; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: February 09, 2022

Abstract

Using detailed transactions data across the US, we find that single women earn 1.5 percentage points lower annualized returns on housing relative to single men. 45% of the gap is explained by transaction timing and location. The remaining gap arises from a 2% gender difference in execution prices at purchase and sale. Consistent with a negotiation channel, women list for less and experience worse negotiated discounts. The gender gap also shrinks in tight markets, where negotiation is replaced by quasi-auctions. Overall, gender differences in housing explain up to 30% of the gender gap in wealth accumulation for the median household.

Keywords: gender gap, housing, wealth accumulation, negotiation

Suggested Citation

Goldsmith-Pinkham, Paul S. and Shue, Kelly, The Gender Gap in Housing Returns (February 09, 2022). Available at SSRN: https://ssrn.com/abstract=3559892 or http://dx.doi.org/10.2139/ssrn.3559892

Paul S. Goldsmith-Pinkham

Yale School of Management ( email )

NY
United States

HOME PAGE: http://paulgp.github.io

Kelly Shue (Contact Author)

Yale School of Management ( email )

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P.O. Box 208200
New Haven, CT 06520-8200
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National Bureau of Economic Research (NBER) ( email )

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