In a consumer research survey conducted by Freddie Mac, it was found the homeownership goals of single female heads of households (SFHOHs) were disrupted by the pandemic. Many have had their work situation altered, and of those who dropped out of the workforce, 75 percent have yet to return.
SFHOHs in communities of color, particularly Black and Hispanic women, more frequently struggle to provide for their household and fear they will not financially recover in the next year. Respondents in Generation X and younger also indicated they struggle financially and are stressed about the future.
“The COVID-19 pandemic has had disparate economic impacts nationwide, particularly on women who are heads of their households, such as single moms and caretakers,” Pam Perry, Freddie Mac single-family vice president of equitable housing, said in a release. “In this survey, we discovered this population’s housing and financial challenges have been further complicated by pandemic-related workplace disruptions and current economic conditions. While the survey showed some feel confident in their knowledge of finances and building credit, many lack confidence in the possibility of homeownership.”
While some SFHOHs renters stated they believed their next move will be into a home they have bought, almost 60 percent of the demographic indicated their homeownership goals felt out of reach indefinitely. In fact, 82 percent said they did not have enough money for a down payment or closing costs and 75 percent believed a mortgage would be higher than their rent, or they do not earn enough for a mortgage payment.
Other obstacles listed were not knowing how to start the process (63 percent); not having an established credit history (56 percent); not knowing someone to help with the process (55 percent); and not having forms in their native language (21 percent).
The survey showed 52 percent of Black, 55 percent of white, and 55 percent of Hispanic respondents stated they were cost burdened, meaning they spend more than 30 percent of their income on housing. However, a closer study revealed Hispanic and Black SFHOH renters are more likely to be cost burdened (57 percent) and not having enough to cover the basics or are living payday to payday, compared with white SFHOHS (47 percent).