Homes in areas with laws in place to protect
LGBTQIA+ buyers from housing discrimination often come at a
premium, forcing buyers to choose between affordability and
protections.
- Typical home values in areas with explicit legal protections
for the LGBTQIA+ community are about 46% more expensive than areas
with no protections.
- Currently, fewer than half of U.S. states offer statewide laws
explicitly prohibiting housing discrimination based on sexual
orientation and gender identity.
- Living in an area with protections may require concessions, and
almost all of LGBTQIA+ buyers surveyed (89%) say they made at least
one sacrifice to save up for their down payment, such as postponing
or canceling health services, or skipping meals.
SEATTLE, June 29,
2023 /PRNewswire/ -- There are a number of decisions
to weigh when deciding on a next home, but LGBTQIA+ home shoppers
and renters also have to weigh an additional factor: whether
they'll be protected from discrimination in their next
neighborhood. Zillow analyzed the typical cost of buying a home in
states, cities and counties with laws in place to protect LGBTQIA+
buyers from housing discrimination and found that LGBTQIA+ home
shoppers typically pay a premium to live in an area offering these
protections.
Even though these protections are now recognized at the federal
level by the Department of Housing and Urban Development, Congress
has not enacted explicit protections, so they can vary
significantly locally. States and cities that do not offer explicit
protections can often make it feel like an "unwelcome" sign has
been posted for LGBTQIA+ homeseekers. And with fewer than half of
U.S. states offering statewide laws and protections, the options
for LGBTQIA+ buyers are limited1.
"The unfair reality is that finding a home where buyers can feel
safe, accepted and protected typically comes at a premium for
LGBTQIA+ families," said Manny
Garcia, senior population scientist at Zillow. "Not only are
the states with statewide protections often among the most
expensive in the country, but in states with an inconsistent
patchwork of protections, the areas with those protections also
tend to be more expensive."
Typical home values in jurisdictions with legal protections are
about 46% higher than in places without those laws. LGBTQIA+ buyers
in Hawaii – where the typical home
value is about 180% higher than in U.S. areas with no protections –
can expect to pay the highest premium, followed closely by
California (148%) and Washington, D.C. (112%).
There are few states that offer protections and also have home
values less than those without. Iowa boasts the largest discount, with a
typical home value 30% less than one in a state or
jurisdiction without protections. Other states in this category
include Michigan (-22%),
Illinois (-17%), Wisconsin (-7%) and New Mexico (-3%).
The higher housing costs that LGBTQIA+ buyers disproportionately
face may explain why LGBTQIA+ adults were more likely to agree that
they are worried about the cost of housing in their neighborhoods:
74% agreed, versus 64% of cisgender heterosexual respondents. Even
with similar incomes to their cisgender heterosexual counterparts,
LGBTQIA+ buyers are more likely to purchase multi-family home types
such as duplexes/triplexes or condos, which can offer relatively
low-cost options in higher-cost markets.
Affording a home in areas with protections can require making
meaningful sacrifices to avoid breaking the bank. According to a
Zillow survey of prospective and successful buyers, almost all
LGBTQIA+ buyers (89%) reported making at least one sacrifice to
save up for their down payment– such as postponing or canceling
health services or skipping meals – compared to 78% of cisgender
heterosexual buyers.
More work is needed to ensure an equitable housing market for
all. For now, every for-sale and rental listing on Zillow displays
local legal protections, such as protections for source of income
and against LGBTQ discrimination, as well as a single flat-free
rental application – a game changer for LGBTQIA+ renters who
disproportionately pay more in upfront costs. For homebuyers,
Zillow displays locally available down payment assistance programs
on all listings to help shoppers find resources to help them
qualify for financial help to buy their dream home.
Typical Home Value
in States with Statewide Protections for LGBTQIA+
|
State
|
Typical Home
Value
|
Premium $ (compared
to
typical home value in states
without statewide
protections)
|
Premium
% (compared to typical
home
value in states without
statewide protections)
|
Hawaii
|
$834,499
|
$536,872
|
180 %
|
California
|
$737,900
|
$440,273
|
148 %
|
District of
Columbia
|
$632,312
|
$334,685
|
112 %
|
Massachusetts
|
$580,061
|
$282,433
|
95 %
|
Washington
|
$579,575
|
$281,948
|
95 %
|
Colorado
|
$549,807
|
$252,179
|
85 %
|
Utah**
|
$518,806
|
$221,179
|
74 %
|
Oregon
|
$498,832
|
$201,205
|
68 %
|
New Jersey
|
$468,096
|
$170,469
|
57 %
|
New
Hampshire
|
$448,034
|
$150,406
|
51 %
|
New York
|
$436,745
|
$139,118
|
47 %
|
Rhode Island
|
$427,881
|
$130,253
|
44 %
|
Nevada
|
$415,689
|
$118,062
|
40 %
|
Maryland
|
$399,914
|
$102,286
|
34 %
|
Delaware
|
$375,412
|
$77,784
|
26 %
|
Connecticut
|
$373,376
|
$75,749
|
25 %
|
Maine
|
$373,241
|
$75,614
|
25 %
|
Virginia
|
$372,301
|
$74,674
|
25 %
|
Vermont
|
$346,177
|
$48,550
|
16 %
|
Minnesota
|
$327,548
|
$29,921
|
10 %
|
New Mexico
|
$288,227
|
-$9,400
|
-3 %
|
Wisconsin*
|
$276,964
|
-$20,663
|
-7 %
|
Illinois
|
$247,384
|
-$50,243
|
-17 %
|
Michigan
|
$230,929
|
-$66,698
|
-22 %
|
Iowa
|
$209,313
|
-$88,314
|
-30 %
|
*Does not have
protections for gender identity/transgender
**Protections do
not include Public Accommodation
|
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1 States without statewide protections may
have jurisdictions and municipalities offering legal
protections against housing discrimination at the hyper-local
level. For example, while Texas
does not have statewide protections, the city of Austin does.
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SOURCE Zillow