When examining divorce statistics, it's clear that the numbers can vary widely depending on the source and methodology. One of the main reasons for this inconsistency is that divorce data typically lags by about two years. According to the CDC, the most recent national divorce rate is 2.4 per 1,000 people. However, this figure only includes data from 45 states and Washington, D.C., excluding key states like California. In California, the divorce rate is estimated to be closer to 5.88 per 1,000. When factoring in this data, it becomes evident that the national divorce rate could be higher than the reported 2.4 per 1,000.
The CDC's divorce rate of 2.4 per 1,000 people, with a U.S. population of approximately 346 million, translates to about 830,400 divorces per year. Of these, an estimated 65-70% involve real property, meaning over 581,000 divorces annually in the U.S. could involve real estate decisions.
In 2023, there were about 4.09 million existing home sales in the U.S. For perspective, divorces involving real estate represent nearly 15% of these transactions. While this doesn't mean that 15% of all home sales are divorce-related, it highlights the significant potential of this niche. Additionally, with around 668,000 new home sales in 2023, the volume of divorces involving real property becomes even more noteworthy.
Another important trend is the rise of “gray divorce”—divorces involving individuals aged 50 and older. Since 1990, the divorce rate for this age group has doubled, and for those aged 65 and older, it has tripled. In 2019, 36% of all divorces were among people over 50; by 2030, this percentage is expected to increase further.
Military families face unique divorce challenges as well, with rates ranging from 3% to 3.1%, depending on the branch and specific demographics. Female service members experience a notably higher divorce rate than their male counterparts, reaching up to 6.5% in some instances. Veterans, particularly those who served in combat, often experience even higher rates of marital dissolution.
The divorce market is substantial, and the opportunities for those considering specializing in this field are vast. Understanding the scope and impact of divorce on real estate is critical for professionals looking to expand their expertise and better serve this unique client base.
