The State of LGBTQ+ Homeownership

Each June, Pride Month commemorates the 1969 Stonewall Uprising, a pivotal moment in the history of the Gay Liberation Movement in the U.S. It’s a time not only to honor this milestone but also to celebrate the LGBTQ+ community and its profound impact on history. Vibrant parades and festivals attract millions of attendees throughout the month. Yet, amid the festivities, there exists a sobering reality: a significant gap persists in LGBTQ+ homeownership rates, revealing enduring barriers that hinder access to this fundamental aspect of the American Dream.

In the realm where homeownership represents stability and security, LGBTQ+ individuals and couples frequently encounter challenges marked by discrimination, fear, and systemic inequalities. According to the LGBTQ+ Real Estate Alliance’s annual report, The LGBTQ+ Journey to Homeownership, the LGBTQ+ community has a homeownership rate of just 49.8%, which is far behind the American average of 65.9% and non-Hispanic whites at 75.8%. While the report indicates that societal acceptance levels of the LGBTQ+ community, homeownership disparities underscore the complex challenges and discrimination faced by the community in achieving housing equality.

BARRIERS TO HOMEOWNERSHIP

Rising mortgage rates and home prices, lack of inventory, debt burden, and limited understanding of the homebuying and lending processes are just some of the common barriers to homeownership. However, the LGBTQ+ community’s path to homeownership is made even more difficult because of discrimination and the fear of discrimination. According to the LGBTQ+ Alliance’s report, The Center for American Progress reported 29% of LGBTQ+ people reported experiencing some kind of housing discrimination or harassment in a housing setting this past year. In their 2023 Fair Housing Trends report, The National Fair Housing Alliance reported a rise in sex-based housing discrimination complaints including those against gender identity and sexual orientation. Sex (including complaints based on sexual orientation or gender identity) was the third most frequent basis of discrimination, following disability and race, with 2,490 complaints (7.5% of all complaints) in the U.S. in 2023.

HOUSING DISCRIMINATION FACING THE

LGBTQ+ COMMUNITY

The types of housing discrimination faced by members of the LGBTQ+ community are not always limited to discrimination due to sex or gender identity alone. Discrimination can occur because of race, color, religion, national origin, disability, familial status, and sex (including sexual orientation and gender identity). Refusal to rent or show housing, steering, or discrimination during the lending process are just some of the ways LGBTQ+ individuals may encounter obstacles in accessing housing opportunities. Additionally, discriminatory practices can manifest in unequal treatment, harassment, or the imposition of different terms or conditions based on an individual’s LGBTQ+ status. These discriminatory practices not only infringe upon individuals’ rights but also perpetuate systemic inequalities and undermine efforts to create inclusive and equitable communities.

DISCRIMINATION IMPACTS WEALTH BUILDING

Discrimination against LGBTQ+ individuals, beginning at a young age, can significantly impact academic performance, setting off a chain reaction extending into college and the professional sphere. Over 35% of LGBTQ+ individuals have reported experiencing bullying and discrimination during high school, which has had lasting effects on their academic achievements and earning potential, according to the LGBTQ+ Real Estate Alliance’s report. Moreover, as of June 2020, amidst the onset of the pandemic, half of the LGBTQ+ respondents surveyed reported facing discrimination in the workplace, adversely affecting their financial stability. Since then, instances of workplace discrimination have surged, with 21% reporting being denied promotions, raises, equal pay, or training opportunities based on their gender identity or sexual orientation.

Discrimination in education and the workforce can result in lower income and fewer opportunities for career advancement, making it more challenging to save for a down payment or qualify for a mortgage. Additionally, discrimination in the housing market itself can manifest in various forms, such as denial of housing opportunities or unequal treatment by landlords or real estate agents. These barriers compound over time, perpetuating disparities in homeownership rates between LGBTQ+ individuals and their non-LGBTQ+ counterparts.

FEAR OF DISCRIMINATION

Outright discrimination is prevalent, yet it’s not solely about discrimination; the fear of facing discrimination also contributes to the hurdles in LGBTQ+ homeownership. Many LGBTQ+ individuals and couples hesitate to pursue homeownership due to concerns about encountering prejudice or being treated unfairly in the housing market. This fear can stem from past experiences of discrimination or from hearing about the experiences of others within the community. As a result, LGBTQ+ individuals may feel reluctant to engage in the homebuying process or may opt for alternative housing arrangements to avoid potential discrimination. A 2023 report by The National Association of Gay and Lesbian Real Estate Professionals reports surveyed how discrimination shows itself and causes members of the LGBTQ+ community to:

• Feel anxious about how welcoming their new community/ neighbors will be (43%)

• Be cautious in hiring the right professionals (38%)

• Be overly concerned about with how new community/ neighborhood would react if they started a family (35%)

NEW JERSEY LEADS BY EXAMPLE

While not all states have laws in place to protect the LGBTQ+ community from discrimination, New Jersey stands out for its comprehensive protections. The New Jersey Law Against Discrimination explicitly prohibits discrimination based on gender, sexual orientation, gender identity or expression, disability, and other protected characteristics.

These protections go beyond the basic safeguards provided by the federal Fair Housing Act, ensuring LGBTQ+ individuals are treated fairly and equitably in the housing market and fostering an inclusive environment for all residents, including in the realm of homeownership. Through these efforts, New Jersey continues to lead by example in promoting equality and combating discrimination.