JUPITER, Fla. — Housing discrimination (and the fear of it) along with a desire for safe and welcoming neighborhoods differentiate LGBTQ homebuyers and sellers from non LGBTQ homebuyers and sellers according to National Association of Gay and Lesbian Real Estate Professional’s (NAGLREP) fourth annual LGBT Real Estate Report.
A majority (57 percent) of NAGLREP members believe more LGBTQ married couples are buying homes today than prior to the Supreme Court legalizing same-sex marriage in 2015. This figure has jumped from 47 percent in 2017. Additionally, 56 percent of members believe the LGBT community has shown a greater interest in homeownership since the ruling, up from 46 percent in
NAGLREP’s report highlights trends from LGBTQ renters, homebuyers and sellers, culls findings from a February survey of 33 percent (930 responses) members along with research from Freddie Mac, the National Association of Realtors (NAR) and other sources. RE/MAX is a supporting sponsor of the LGBT Real Estate Report.
The report also shares that only 32 percent of LGBTQ individuals live in the same general location as where they went to high school. The desire to move away from one’s hometown is higher for the LGBTQ community when compared to a recent report from North American Van Lines that showed 72 percent of Americans live in or close to the city they grew up in.
The report showed that 73 percent of LGBT Baby Boomers live in a different location from where they went to high school followed by Gen X and Millennials, 67 percent and 63 percent, respectively.
“Choosing where to live is the first step in the journey to homeownership and right away we see the importance of being in an accepting and welcoming community,” said Jeff Berger, founder of NAGLREP. “As LGBT people move from renting to home buying, the right neighborhood remains critical. But the fear of discrimination also plays an outsized role for the LGBT community with 46 percent of renters fearing it during their future home buying process.”
Additionally, the report found the Equality Act would have major implications on the real estate industry. The bill, which was passed by the U.S. House of Representatives last May and remains stalled in the Senate, would add sexual orientation and gender identity as protected classes and ban discrimination against the LGBT community in many areas, including housing, credit and employment.
The majority of NAGLREP members (55 percent) believe that LGBT homeownership levels will rise at least 9 percent within five years of the Equality Act becoming law. LGBTQ homeownership levels currently stand at 49 percent compared to the nation’s overall 65 percent mark.
Also, a group of NAGLREP members (57 percent) believe the policies of the current administration is having a negative impact on the LGBTQ community’s confidence to buy or sell a home. Thirty percent of members believe a concern of housing discrimination keeps renters they know renting.
The LGBT Real Estate Report also utilized information from Iowa State University to shed light on how lending discrimination impacts the LGBT community, including that 73 percent of same-sex applicants were more likely to be denied a loan than heterosexual couples despite no evidence that these buyers had high default rates. In fact, the report showed that 34 percent of LGBT buyers over the last 10 years put down at least a 20 percent down payment with 67 percent opting for a 30-year fixed rate loan.