When it comes to real estate investing, there is a common stereotype that women investors are more risk-averse and less ambitious than men. However, recent research analyzing the performance of real estate funds challenges this notion. By examining objective fund performance data, multiple studies reveal no significant differences in returns between real estate funds managed by women versus men. In fact, in some cases female-managed real estate funds generated higher returns with less volatility. Thus, gender stereotypes likely negatively impact the amount of capital entrusted to women real estate investors, despite a lack of evidence indicating women underperform male counterparts.
Many VCs incorrectly perceive women real estate investors as more cautious and reluctant to pursue growth
Several studies of venture capitalists making investment decisions expose clear gender stereotyping when evaluating entrepreneurs seeking capital. Women are frequently described as risk-averse, passive, and focused on slow steady growth rather than rapid expansion. For example, statements characterizing women investors as “cautious” or only willing to make “small investments” are common. Conversely, men are depicted as ambitious risk-takers who need significant capital to fund growth plans.
Actual real estate fund performance data shows no significant differences based on manager gender
To test the accuracy of gender assumptions in real estate investing, researchers analyzed the actual annual fund performance data of male and female managed real estate funds. Across multiple performance metrics like returns, volatility, loss rates, and others, statistical analysis revealed no significant differences based on manager gender. In some cases women-managed real estate funds actually modestly outperformed male counterparts. This data clearly conflicts with the prevailing gender stereotypes espoused by many real estate investors.
Unjustified gender stereotypes likely impede women’s access to real estate capital
Despite clear data showing female real estate investors perform similarly to men, the share of capital entrusted to women remains disproportionately low. For example, one study found that women-owned real estate funds only represented 7% of Swedish government venture financing activity, even though rules mandate gender-neutral practices. Pervasive outdated gender assumptions likely explain this inconsistency. If decision-makers in real estate perceive women as less driven, less likely to provide strong returns, and needing less money, they will be inclined to funnel more capital to male fund managers.
Some programs try to correct the gender investment gap by targeting high-potential women
A few leading real estate organizations are trying to counteract the gender investment imbalance by creating special programs focused on high-potential younger women. For example, Blackstone recently launched an initiative to mentor and develop promising undergraduate women interested in real estate investing careers. Participants are given recruiting advantages when applying for Blackstone’s competitive summer analyst roles. Initiatives like this aim to spread talent and capital more equitably based on merit rather than gender.
In conclusion, widely-held stereotypical beliefs depict women as inferior real estate investors compared to men. However, empirical fund performance data reveals no evidence that women significantly underperform male counterparts. In fact, women-managed real estate funds often generate returns equal to or even marginally higher than male funds. Nonetheless, women still fail to attract capital consistent with their demonstrated track record, likely constrained by outdated gender assumptions.