The Mechanism of Gender Differences in Housing Returns: From Negotiation and Wages to Return on Investment

This review explores the mechanisms that contribute to gender differences in housing investment returns. Research indicates that women typically experience lower annualized returns in real estate investments compared to men, and this disparity remains consistent across numerous countries and various institutional contexts. The primary mechanisms behind this phenomenon include: first, the gender wage gap, which restricts women’s credit capacity and influences their real estate choices, ultimately affecting their asset portfolios and investment returns; second, women often engage in more conservative pricing and are more likely to make concessions during house purchase and sale negotiations. They are also more influenced by social norms and risk perceptions, which can diminish transaction returns. Furthermore, societal structures and cultural environments can amplify psychological pressures and self-restraint, thereby perpetuating and intensifying gender differences at various stages of the investment process. Future research should aim to deepen the exploration of regulatory mechanisms such as negotiation psychology, market design, and information transparency, as well as investigate the complex pathways through which gender differences evolve in different systems and cultures. This could enhance the theoretical understanding of wealth inequality within the housing market.