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How The SCOTUS Ruling On Same-Sex Marriage Will Affect The Housing Market

This article is more than 8 years old.

First comes love, then comes marriage, then comes a home before the baby carriage?

Joseph Rand is the Managing Partner of Better Homes and Gardens Rand Realty. In addition to being an attorney (he attended Georgetown University Law School and holds a masters degree from Stanford Law School), he clerked in the Second Circuit Court of Appeals and has taught at Stanford Law School, Brooklyn Law School and Fordham Law School. He is an expert in real estate law, and a respected real estate educator and an active blogger for the Market Intelligence Blog and the real estate education blog The World's Best Real Estate Agent. Together we discussed the results of the Better Homes and Gardens Real Estate and NAGLREP first-of-its-kind national LGBT study dedicated to homeownership.

 Kate: How is the SCOTUS ruling on same-sex marriage related to the housing market?

Joseph: An overlooked part of the gay marriage ruling is that we’re likely to see a surge in home buying by the LGBT community. After all, what do people do once they get married — they buy a home.

Kate: What is the buying power of same-sex couples?

Joseph: Individuals who identify themselves as LGBT represent an estimated buying power of $840 billion and reportedly live in 99.3 percent of all counties nationwide. These numbers really show us that the LGBT community is not only a crucial part of the nation's landscape, but a powerful market segment that is increasingly achieving social milestones that are historical triggers to home purchases — including partnerships, having children, and now on an even wider-scale, getting married. As a result, this enormously influential demographic is slated to be a catalyst for the continued housing market recovery.

Kate: Was the inability to marry preventing same-sex couples from purchasing homes before, and will the same-sex marriage ruling impact the number of couples buying homes going forward?

Joseph: I think any housing discrimination varies from region to region. All in all, there is seemingly a growing majority of the country that is celebrating LGBT equality and the SCOTUS ruling, and I hope that this has a positive impact on lessening the instances of housing discrimination and boosting the overall housing market. I hope too that this will lead to more understanding and acceptance of LGBTs. Sadly, this is not to say LGBTs are 100% in the clear when it comes to housing discrimination, but this is certainly paving the way.

Another interesting outcome of the survey we conducted was learning that, according to the data, 81 percent of LGBT survey participants felt a ruling for marriage equality would make them feel more financially protected and confident. That is a significant data point that makes it clear the comfort level of purchasing a home will rise in the coming years.

Kate: What role does discrimination and the fear of discrimination play here?

Joseph: Among the survey respondents, 73 percent stated strong concern about some aspect of housing discrimination, either in purchasing a home or renting. The concerns expressed included discrimination by real estate agents, home sellers, landlords, mortgage lenders, property management companies and neighbors. Nobody enjoys the phenomenon of being discriminated against, so clearly these findings are notable. Luckily, we have advocacy groups like NAGLREP, which work at addressing the root of this problem. By providing resources to help consumers identify LGBT-friendly real estate professionals in their cities, they assist in creating an atmosphere conducive to acceptance. Additionally, they have content to make agents more LGBT-friendly for the regions they serve.

Kate: Are the specifics of what same-sex couples look for in a home different from other couples? Will the types of houses or neighborhoods being sought after differ significantly from those being pursued today?

Joseph: The surveys show that the LGBT community has virtually the same perspective on home ownership as the overall community: they value owning a home, they want safe neighborhoods, and they don’t want to be discriminated against.  Expectedly, for LGBT respondents, the top priority (for 88%) is safety. And, when asked about the importance of different aspects of their ideal neighborhood and community, 80% of respondents are most concerned about living in a neighborhood with low crime. Additionally, nearly 60 percent of all LGBT Millennials plan to have children in the future; therefore, quality of school districts and lifestyle considerations such as proximity to parks are important. This is no different from the normal homebuyers that are on the market today for real estate. A family is a family, especially for those who still believe strongly that homeownership is a core tenet of achieving the American Dream.

Summary: Overall, the lowering of barriers to marriage – a historical impetus to settling into homeownership — for the LGBT community will likely foreshadow an increase in homeownership and a boost to the overall market. The LGBT community is a powerful force that could drive a fortuitous shift in the housing market for years to come.

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