In addition to being LGBTQ+ Pride Month, June is also National Homeownership Month. Historically, individuals identifying as lesbian, gay, bisexual, transgender, intersex, or queer have faced discrimination in housing, as well as other areas of society. While progress has been made over the years, disparities still exist in access to homeownership among the LGBTQ+ community. In honor of both LGBTQ+ Pride Month and National Homeownership Month, we are taking a deeper dive into the experiences of LGBTQ+ homeowners, examining challenges and barriers that still persist, and offering recommendations for increasing equity in housing opportunities.
History of LGBTQ+ Housing Discrimination
Like many other marginalized groups, LGBTQ+ people were generally denied the right to own homes for much of the 20th century. While housing-related laws and programs have generally favored white, married families throughout American history, banks and realtors regularly rejected mortgage applications from single or divorced adults. This included LGBTQ+ people, who, up until 2015, were unable to legally marry in the United States.
In the 1970’s – not long after the passing of the Fair Housing Act – the gay rights movement emerged. With it, the fight for LGBTQ+ homeownership began to gain traction. The 1977 “Home is Where the Hatred Is” campaign, led by the National Gay Task Force (now, the National LGBTQ Task Force), raised awareness around LGBTQ+ housing discrimination and pressured banks and real estate agents to change their policies. However, it was not until several decades later that LGBTQ+ couples seeking to own homes would receive the full privileges of legal marriage throughout the United States.
After the U.S. Supreme Court legalized same-sex marriage in 2015, it became easier for LGBTQ+ couples to obtain a mortgage. Prior to that ruling, same-sex couples could only own a home together through a “joint right of tenancy” or “tenancy in common” agreement. This meant that each person had only a 50% stake in the property, making it difficult for one partner to inherit the other’s share of the home, in the event of one partner’s passing.
The federal Fair Housing Act prohibits housing discrimination on the basis of race, color, national origin, religion, sex, familial status, or disability. Some states and municipalities offer additional protections for the LGBTQ+ community in their fair housing ordinances, but those protections have generally not been widespread, and vary from place to place. It wasn’t until 2021 that the U.S. Department of Housing and Urban Development began enforcing the Fair Housing Act to prohibit discrimination on the basis of sexual orientation and gender identity, following an Executive Order from the Biden Administration. The Executive Order was issued to address the Supreme Court’s 2020 landmark decision in Bostock v Clayton County, which held that discrimination against people based upon their sexual orientation or gender identity is, in fact, a form of sex discrimination. As a result, individuals who believe they have experienced housing discrimination because of their sexual orientation or gender identity are offered expanded protections under the law, and have the right to file a fair housing complaint alleging sex discrimination.
LGBTQ+ Homeowners Experience Persistent Disparities and Discrimination
While policy changes have led to increased housing opportunities for LGBTQ+ Americans over the years, the work is far from over. Significant disparities still exist in homeownership rates, and research shows that LGBTQ+ people are much less likely to own a home than heterosexual people. According to research from Urban Institute, the homeownership rate among LGBTQ+ people is 20 percentage points lower than the rate for people who identify as straight and cisgender. Additionally, an estimated 49 percent of the LGBTQ+ community owns a home, compared with nearly 64 percent of the total U.S. population.
Housing discrimination continues to be a significant barrier to homeownership for LGBTQ+ people. It is a common misconception that fair housing law applies only to renters. While renters are absolutely protected by fair housing law, prospective and current homeowners are also covered under the legal protections of the Fair Housing Act. The National Fair Housing Alliance reported that sex (including complaints based on sexual orientation or gender identity) was the third most frequent basis of discrimination, with 2,490 complaints reported in 2022. It is important to note that the actual number is likely much higher, as most incidents of discrimination go unreported.
Identifying Housing Discrimination Based on Sexual Orientation and Gender Identity
Although housing discrimination is persistent and pervasive, it’s not always easy to identify. If you are in the process of buying a home, or if you are getting a home appraisal, it is important to know what to keep an eye out for. Below, we’ve outlined some examples of housing discrimination, based on sexual orientation and/or gender identity, that would violate the Fair Housing Act:
1. Refusal to be shown housing based on sexual orientation or gender identity
- Example: A real estate agent refuses to show houses listed for sale to a potential buyer because the buyer is transgender.
2. Steering based on sexual orientation or gender identity
- Example: A same-sex couple asks a real estate agent to see rental units throughout the city, but is only shown rental units in a part of the city known for having many LGBTQIA+ residents (sometimes referred to as a “gayborhood”).
3. Unequal Terms and Conditions based on sexual orientation or gender identity
- Example: A transgender individual asks a real estate agent to see houses listed for sale and the agent shows fewer and less desirable properties than they show to an individual who is cisgender.
4. Harassment based on sexual orientation or gender identity
- Example: A real estate agent subjects their LGBTQ+ clients to pervasive and unwelcome sexual conduct that interferes with the sale of housing.
If you have experienced any of the types of discrimination listed above, resources are available. Your local fair housing agency can help you to better understand and exercise your fair housing rights.
Increasing Equitable Opportunities for LGBTQ+ Homeowners
If we want to advance fair housing and create equitable opportunities for LGBTQ+ homeowners, it is necessary to acknowledge the disparities and barriers to homeownership that still exist. Many states, including Ohio, have a long way to go to fully welcome, accept, and protect LGBTQ+ residents. An analysis of Ohio’s LGBTQ+ policies ranked the state with a “low” score, earning just 7.75 out of the 44.5 total possible points. At home and across the country, advocates should continue to push for more equitable policies at every level. As a best practice, housing providers, real estate agents, mortgage lenders, and appraisers alike should stay up to date on fair housing education, to ensure that they remain in compliance with their responsibilities under fair housing law. No matter where you live, you can be an ally to the LGBTQ+ community by doing your part to make your community inclusive, welcoming, and safe for everyone. For more resources, please visit our website at www.thehousingcenter.org/lgbtq.