Analysis: More Same-Gender Couples Reside in States with Higher Housing Costs

To commemorate LGBTQ Pride Month, LendingTree has released an analysis of U.S. Census Bureau 2020 American Community Survey data, specifically looking at home prices in the states with the largest (and smallest) number of same-gender-couple-occupied households. The findings show that same-gender couples are more likely to reside in states with higher housing prices. Additional research indicates that same-gender couples are more likely to have mortgage applications denied or to receive higher interest payments than different-gender couples.

Vermont, Massachusetts, and New Mexico ranked highest in the largest share of households occupied by same-gender couples, in relation to couple-occupied households as a whole. Across the three states, an average of 2.072% of couple-occupied households are occupied by same-gender couples. Conversely, South Dakota, North Dakota, and Idaho had the smallest amount of households occupied by same-gender couples—an average of 0.758% among the three states.

The analysis also found that, in the 10 states where households occupied by same-gender couples makes up the largest share of couple-occupied households, median home values were on average $116,730 more than in the 10 states where same-gender couple households are least common.

Delaware, Oregon, California, Maine, Nevada, New York, and Washington rounded out the top 10; Mississippi, Nebraska, Montana, Alabama, Iowa, Wyoming, and Alaska followed with the smallest amount of households occupied by same-gender couples.

“One key reason for why same-sex couples are more likely to live in high cost areas may be related to how places that are typically viewed as more tolerant and accepting of members of the LGBTQI+ community—like California and New York—are often more expensive than less welcoming parts of the country,” says LendingTree Senior Economic Analyst Jacob Channel. “Because of this, dealing with higher-cost housing may be a very real price that same-sex couples have to pay in order to live in an area that is accepting of them.”

Channel also cites an analysis of Home Mortgage Disclosure Act data from the National Community Reinvestment Coalition, indicating that borrowers in same-gender relationships are more likely to be denied mortgages that those in different-gender relationships.

“This study and others like it highlight just how complex housing related issues for members of the LGBTQI+ community can be, and how potentially earning more money doesn’t always mean that you’ll necessarily have an easier time navigating socioeconomic hardships,” Channel says.

Citing another recent study, LendingTree also notes that the states more likely to host same-gender homeowners tend to have considerably higher interest rates, with California, Washington, and Massachusetts ranking as the top three states with the highest mortgage payment increases. Each of those states also appear in the top 10 list for states with the most same-gender-couple-occupied households.

Researchers note that there is still a lack of data and potential sampling bias to take into account, so it is still difficult to pin down just how same-gender couples fare in the housing market. Ultimately, they say more research is still needed to form concrete conclusions.

The analysis ends with a number of tips for prospective LGBTQ homeowners: Shop around for a mortgage; speak up if you think you’re being discriminated against, and figure out whether a joint mortgage application could be a better move.

Check out the full report here.