DS News - U.S. Bank

24 HOMEOWNERSHIP RATES LAG IN LGBT COMMUNITIES Despite a strong interest in owning their own home, members of the lesbian, gay, bisexual, and transgender (LGBT) community fall behind the general population in terms of actual homeownership rates, according to a research report published by Freddie Mac. Freddie Mac conducted a survey among 2,313 U.S. LGBT community members aged 22–72 years. e study revealed that 49 percent of LGBT households were likely to own a home. is is considerably lower than the current national homeownership rate of 64.3 percent. "We fielded this survey to get a better understanding of the current challenges facing the LGBT community, as well as their current housing choices, preferences, experiences, and aspirations," said Danny Gardner, SVP of Affordable Lending and Access to Credit at Freddie Mac. e study also found that gay men and lesbians were most likely to own a home, with 52 percent of respondents in this segment owning a home, while LGBT African- Americans (30 percent) and LGBT millennials (23 percent) were the least likely to be homeowners. Despite these odds, the survey indicated that the overall LGBT community had positive attitudes about homeownership, with three-quarters of LGBT renters agreeing that owning a home was a good financial investment and 72 percent of renters saying they wanted to own a home in the future. According to Freddie Mac, one of the reasons for the lower homeownership rates in the LGBT community can be attributed to their tendency to relocate more frequently, with 67 percent of the respondents saying that they did not live in the same area in which they grew up. "What we found was that several factors— including increased mobility, lower marriage rates, a tendency to live in high-cost urban areas, and fears of discrimination—may be contributing to these lower homeownership rates," Glover said. e survey also found that more people in the LGBT community seek LGBT-friendly neighborhoods. ey also cited price and safety as important factors when deciding where to live. Some of the factors affecting homeownership rates within the LGBT community are the same ones facing the general population. Over half of the LGBT renters surveyed said they either didn't know how much was needed for a down payment on a home or thought it was more than 20 percent. "Unfortunately, the rising cost of renting and buying combined with misunderstandings about down payments are slowing homeownership rates among the LGBT community even further," said Gardner. "at is why as an industry—lenders, appraisers, agents, homebuilders, and Freddie Mac— must understand LGBT housing needs, recognize their challenges, and educate them on the buying process."

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