Beyond home price appreciation, homeownership provides financial benefits that are unique to the United States. The mortgage interest deduction benefits taxpayers, especially those with higher incomes. Fixed 30-year fixed-rate mortgages have helped keep monthly mortgage payments low and stable while buffering homeowners from macroeconomic impacts, like inflation and interest rate increases. And because most US homeowners can refinance without a penalty, they can lower their borrowing costs when interest rates drop, which is uncommon in other countries.
This National Homeownership Month, what if we committed to increasing access to homeownership to all who may face discrimination in the housing market, including those in the LGBTQ+ population? What if, instead of just the concept owning a home, the American dream included efforts to expand access to homeownership while enhancing housing sustainability and financial prosperity for all so they, too, can achieve their dream?
LGBTQ+ individuals face unique challenges in homeownership, which is a critical pathway to building wealth and achieving financial stability. Research indicates that the homeownership rate among LGBTQ+ people is significantly lower than that of straight and cisgender individuals, with a gap of 20 percentage points1. This disparity can be attributed to several factors, including:
1. Demographic Trends: Age plays a crucial role. The LGBTQ+ population tends to be younger, which correlates with less time to build wealth and strong credit scores necessary for homeownership.
2. Economic Impact of Marriage: Marriage generally provides economic benefits that facilitate homeownership. However, for LGBTQ+ individuals, the “marriage premium” is less significant compared to straight and cisgender couples.
3. Discrimination Concerns: Many LGBTQ+ individuals express concerns about potential discrimination in the home-purchasing process, which can deter them from pursuing homeownership.
To address these issues, policymakers could consider several potential solutions. Incorporating questions on sexual orientation and gender identity in national surveys could provide more accurate data and a clearer picture of the challenges faced by LGBTQ+ individuals to inform policy decisions and support the LGBTQ+ community in the housing market. Expanding access to financial education and credit counseling tailored to the LGBTQ+ community could help improve credit scores and financial readiness for homeownership. Establishing down payment assistance programs may alleviate financial barriers that many in the LGBTQ+ community face, particularly those who struggle with savings. Ensuring that these solutions are implemented with a high regard for privacy and inclusion will be essential to promote more inclusive and equitable homeownership opportunities and the associated benefits for all.
In conclusion, addressing the homeownership gap for LGBTQ+ individuals requires a multifaceted strategy that includes better evidence-based policies, targeted financial education, and a supportive network of housing professionals. By bringing these solutions to the attention of policymakers not only during National Home Ownership Month, but throughout the year, there is an opportunity to make significant strides towards equality in homeownership and the broader goal of financial security for all.
~Brian Crane, CEO of Intero Real Estate Services
1 Why Are There Gaps in LGBTQ+ Homeownership? | Urban Institute
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