How women’s workforce participation is shaping real estate

As more women achieve financial independence and investment literacy, they are increasingly entering the property market as investors.

As more women achieve financial independence and investment literacy, they are increasingly entering the property market as investors.

 

As demographics evolve and societal norms change, one of the most notable shifts in the workforce has been the increasing participation of women. This trend has profound implications for various industries, including real estate and property development.

The female labour force participation rates have substantially increased in the past decades. According to ABS Labour Force data, the female labour force participation rates have increased from 36 per cent in 1966 to 63 per cent in 2024.

During the same period, the male labour force participation shrunk from 84 per cent to 71 per cent.

As more women achieve financial independence and investment literacy, they are increasingly entering the property market as investors.

With more women joining the workforce, traditional family structures have been transformed in most households. Dual-income households have become increasingly common, leading to shifts in housing preferences and demand.

According to the ABS Labour Force Status of Families data, there were about 6.6 million couple families, of which 3.6 million or 58 per cent of the families had both partners employed.

This is an up-shift by 20 percentage points compared to 1979 when 1.2 million of the couple families had both partners working, out of a total of 3.3 million couple families.

This leads to a substantial increase in the household income. As a result, these dual income families are more likely to be able to afford properties in the well-established areas.

This is not just the case for homeownership. Median rents have been increasing since 2021 and according to the ABS, in February 2023 the median weekly rent was as high as $540 a week in ACT to $380 a week in South Australia.

Moreover, the mean house price in Australia is estimated to be about $920,000. This underscores the importance of female workforce participation for the property industry.

Apart from dual income households, another emerging market is where the mother is a primary income earner.

Today, girls and women outperform in education. In 2023, about 36 per cent of women between the age of 15-74 held a bachelor’s degree or above as their highest qualification, compared to 28 per cent for men.

With Australia shifting towards a knowledge economy where education and training are the most sought-after skills, these highly educated women will emerge as winners when it comes to job opportunities and remuneration.

As many women out earn their partners, it will become increasingly common to see more households with fathers tending to children.

Property developers and real estate agents need to adapt to cater to the needs of modern families, which may prioritise features such as home offices, flexible living spaces, and amenities that support work-life balance.

In June 2023, there were 690,000 one parent families that had dependants under the age of 15. Of these, in 480,000 families, the parent was employed. The vast majority (82 per cent) of the working one parent families with children and dependants were single mother families.

The census data also confirms the increase in single parent households over time, with the majority of these being single mother families.

This demographic segment may have distinct preferences when it comes to housing location, design, and affordability.

Families in this cohort will benefit from being in areas where there are affordable and reliable childcare assistance, healthcare access, easy access to education and job training, parenting support groups and workshops, legal aid services to assist in matters such as child custody and family law.

Property developers can capitalise on this trend by offering diverse housing options that appeal to women buyers and renters.

Women’s workforce participation has also influenced patterns of urbanisation and community development. Women often play a significant role in decision-making related to housing and neighbourhood amenities. As a result, there is a growing demand for walkable neighbourhoods, access to public transportation and proximity to essential services.

As women’s workforce participation continues to increase, the property industry must adapt to meet the changing needs and preferences of this demographic. Picture: iStock

The growing economic empowerment of women has contributed to increased demand for housing, particularly among single women and female-headed households.

Almost half the women in the workforce worked in jobs that required more training and skills (skill level 1 and 2 occupations that required at least an associate degree, advanced diploma or higher) as per the latest labour force survey.

About two in five women held skill level 1 jobs or jobs that needed at least a university degree. When looking at the median incomes by skill level of occupation, a skill level 1 worker earns almost twice as much as a skill level 5 (no training needed to perform the tasks in the job) as per the latest census.

As more women achieve financial independence and investment literacy, they are increasingly entering the property market as investors. This presents opportunities for developers and real estate professionals to tailor their offerings to meet the preferences and investment goals of female investors.

Strategies such as promoting sustainable and socially responsible development, as well as offering educational resources on property investment, may resonate with this demographic.

The rise of remote work and flexible employment arrangements has further accelerated women’s participation in the workforce. Working from home is also a luxury that is more readily available for skilled workers.

This has implications for property developers and managers, as the demand for co-working spaces, home offices, and mixed-use developments continues to grow. Understanding the evolving needs of remote workers, including women, can inform strategic decisions about property design, amenities, and location.

Despite women’s work, both paid and unpaid, acting as the backbone of our economy, today women’s work is still undervalued. As a market segment, women are under-utilised and often ignored despite advancements in education and career, especially in services related to investments.

Discrimination and inequality at workplaces are challenges that still exist for some women. Moreover, women spend about 30.2 hours per week on unpaid care and housework, compared to 21.8 hours per week for men. This affects working hours and pushes more women to work part-time.

Discrimination and inequality at workplaces are challenges that still exist for some women. Picrue: Thinkstock

Motherhood often results in a substantial decrease in earnings. On average, women experience a 55 per cent reduction in earnings during the initial five years of parenting their first child, while men’s earnings typically remain unchanged during this period.

The lack of high quality and affordable childhood education takes women off the workforce for a longer period. However, with flexible work arrangements, this trend has largely diminished.

ABS data from 1966 showed a large drop in employment for women between the ages of 25 and 40 when the employment to population ratio dropped to below 40 per cent. However, in 2020, this drop was almost non-existent, with employment to population ratio remaining well above 70 per cent.

Planning and government bodies must invest in policies and programs that recognise the economic importance and value of care work in Australia and help families to better share caring responsibilities and incentivise initiatives that foster workforce participation of women.

Women’s participation in the workforce has significantly contributed to overall economic growth by expanding the labour force and increasing productivity. With more women working and contributing to household incomes, there is greater consumer spending, investment, and tax revenue generation.

As women’s workforce participation continues to increase, the property industry must adapt to meet the changing needs and preferences of this demographic.

By embracing diversity, inclusivity, and innovation, property developers and real estate professionals can position themselves for success in an evolving market landscape shaped by shifting demographics.

Hari Hara Priya Kannan is data scientist at The Demographics Group