Homeownership should be for everyone, but, historically, safe, secure and affordable housing is less certain for members of the LGBTQIA+ community. That’s because home seekers who identify as LGBTQIA+ may face additional obstacles en route to finding their first home or dream home.
LGBTQIA+ Homeownership
According to a recent Freddie Mac survey (Freddie Mac, 2018), individuals who self-identified as LGBT had a homeownership rate of only 49%, which is significantly lower than the average U.S. rate of 65%. Despite this figure, a whopping 72% of respondents are interested in owning their own home in the future, with primary motivators including a desire to stop paying rent, invest financially, take control of decorating their personal space and enjoy more stability. When it comes to house hunting, LGBT home seekers most valued a sense of belonging, lack of LGBT harassment/violence, low violent crime rate and comprehensive anti-discrimination laws and protections.
Barriers that LGBTQIA+ Home Seekers May Face
So, with high interest and clear motivation, what is preventing this community from purchasing homes at a higher rate? Home seekers that identify as LGBTQIA+ face a unique set of barriers when trying to achieve homeownership. Understanding what might stand in your way, as well as how to tackle problems if they arise, is critical in finding your dream home as well as bolstering LGBTQIA+ homeownership rates.
Discrimination
While the 1968 passage of the Fair Housing Act prevents housing discrimination, and a 2021 executive order carves out specific protections for LGBTQIA+ individuals, discrimination is a fear for roughly 46% of Freddie Mac survey respondents (The White House, 2021). Similarly, 30% of National Association of Gay and Lesbian Real Estate Professionals (NAGLREP) members recently reported that this fear prevents LGBT renters from purchasing a home (NAGLREP, 2020). A significant 75% of NAGLREP members also stated that they believe housing discrimination to be a major concern.
LGBTQIA+ individuals should take the first step toward homeownership with a real estate agent that they can trust. NAGLREP and similar LGBT real estate directories can help ensure that each and every member of your homebuying team is kind, professional and inclusive. If you or someone you know does experience discrimination within the housing industry, be sure to file a complaint with the Department of Housing and Urban Development.
Financial Literacy
A lack of understanding when it comes to the homebuying process may also be stunting LGBTQIA+ homeownership rates, as is the case with most first-time buyers. Nearly one-third of the Freddie Mac survey respondents were unsure about required down payment amounts, and 25% believed that their down payment could not be less than 20%. A significant 63% of NAGLREP members also reported that clients were very or extremely concerned when it came to their knowledge of the homebuying process.
Luckily, this barrier is not as massive as it may seem. A comprehensive homebuyer education course can go a long way in building an understanding of the homeownership process. Experienced agents and home finance professionals can also provide guidance, support and advice along the way.
Housing Affordability
Affordability is limited across the nation, effectively pricing out many would-be homeowners from all walks of life. LGBTQIA+ households are no exception. In fact, just last year, Zillow found that areas with explicit LGBT-friendly protections are actually priced 63% higher than comparable areas that lack similar policies (Zillow, 2020). The NAGLREP survey expands on this squeeze, with 63% of members reporting that LGBT clients are very or extremely concerned about housing affordability.
Building a budget, exploring additional neighborhoods and determining wants versus needs can help LGBTQIA+ home seekers find the right fit, at the right price. Consulting with a knowledgeable mortgage professional can also uncover the most cost-effective path forward.
At the end of the day, homeownership is for everyone! By studying up on the homebuying process, prioritizing affordability and seeking out an inclusive homebuying team, LGBTQIA+ house hunters will be ready to make their way down the path to homeownership.
Published on June 21, 2021
