LGBT Buyers Pay Higher For Discrimination Protection

LGBT Buyers Pay Higher For Discrimination Protection

Markets with better safeguards cost $127K more typically

LGBT homebuyers and renters pay a premium to live in jurisdictions that offer legal protection from discrimination, according to research from Zillow. While it is unlikely that LGBT legal protections increase home values – and other factors come into play – the fact that these areas are more expensive has a disproportionate impact at these aspirational locations.

To identify price differences, Zillow analyzed the typical cost of buying a home in states, cities and counties that have LGBT housing discrimination protection laws in place. These protections include being evicted, denied housing, or refused the ability to rent or buy housing based on sexual orientation or gender identity. While these premiums pertain to buyers, LGBT renters also feel the effects—given that high home values generally correlate with high rents.

National housing and employment non-discrimination laws protect classes such as sex, race, age, color, religion, and national origin. In June, the Supreme Court affirmed job protections for people who identify as LGBT, but explicit protections against housing discrimination do not exist at

the federal level, and vary significantly based on local jurisdictions. Just 22 states and the District of Columbia offer laws explicitly prohibiting housing discrimination based on sexual orientation and gender identity.

Typical home values in jurisdictions with legal protections are about $127,000 higher than home values in places without those laws—nearly $328,575 compared to $201,462. Many of these jurisdictions also offer the LGBT community legal protections beyond housing, including employment and public accommodation protections. While it’s not the specific legal protections bumping up home values in these states, those who identify as LGBT, among other buyers and renters, are paying more to buy or rent in areas that offer protections through antidiscriminatory policies.

TOP LOCALES

LGBT buyers in Hawaii; Washington, D.C.; and California can expect to pay the biggest premium. Home values in Hawaii were approximately 219% higher than the typical home values in areas with no protections. Washington, D.C. followed at 218% higher, which was followed by

California at 187%. Iowa is the only state with explicit protections for LGBT homebuyers where the typical home costs less than in places without protections at 23% less.

More than 70% of LGBT buyers report making at least one sacrifice to stay at or below budget, compared to 58% of heterosexual buyers, according to data from Zillow’s 2019 Consumer Housing Trends Report. Such sacrifices include buying a home that requires renovations and smaller than initially planned.

To assist with the homebuyer protection issue, Zillow recently unveiled LGBT Local Legal Protections, a resource to help people see whether for-sale and rental listings are in communities where state and local regulations explicitly protect individuals who identify as LGBT from discrimination. All property listings on Zillow, including homes on and off the market, now include information about the home’s jurisdiction and the local laws in place that protect fair and equal treatment in housing, employment, as well as public accommodations based on sexual orientation and gender identity.