Pride Month: LGBTQ+ Consumers Face More Homebuying Obstacles

This June, the Pennsylvania Association of Realtors® recognizes Pride Month and the homeownership triumphs and challenges of LGBTQ+ homebuyers and sellers, as well as the journeys of LGBTQ+ real estate professionals. 

In 2023, Fannie Mae’s National Housing Survey found that 8.6% of consumers identified as lesbian, gay, bisexual or transgender, with the LGBT population skewing relatively younger and more economically disadvantaged. The LGBT homeownership rate was 46% – significantly lower than the national rate of 65%. 

“Many LGBTQ+ buyers, especially trans folks, are navigating barriers that go beyond affordability alone,” notes Mon Kramer, the founding president of the Eastern PA Chapter of the LGBTQ+ Real Estate Alliance and a member of the Greater Philadelphia Association of Realtors®. 

“Concerns about discrimination, safety, legal protections and finding affirming professionals all play a role in the homebuying process. Buyers want to know they’ll be safe, respected and welcomed not just during the transaction, but in the communities where they choose to live. Even with those challenges, I continue to see LGBTQ+ clients deeply committed to building stability, community and long-term roots through homeownership.” 

Kramer is right – homeownership aspirations still remain high, with 83% of LGBT consumers saying they “would like to buy at some point” or “continue to own.” Overcoming homeownership barriers can prove challenging, though, as the majority of LGBT respondents also said they believed there are more obstacles to owning a home than their non-LGBT peers. 

Fannie Mae found that LGBT consumers were more likely to be unemployed part-time, and LGBT respondents were more concerned about job loss than non-LGBT respondents. About half of LGBT consumers reported that their total family income was less than $50,000, compared to only 34% of non-LGBT consumers.  

More highlights from Fannie Mae’s survey: 

• The homeownership rate for those who identified as gay or lesbian was 53%. 
• The homeownership rate for those who identified as bisexual was only 32%. 
• 58% of LGBT homeowners surveyed were first-time homebuyers (compared to 46% of non-LGBT homeowners).  
• LGBT respondents were more likely to live in apartments and condos compared to non-LGBT respondents (32% vs. 20%). 
• 70% of LGBT respondents said it was difficult to get a home mortgage today, compared to only 55% of non-LGBT respondents 
• LGBT consumers were more concerned about closing costs, credit score or history, current debt and insufficient income for monthly payments 

In 2021, the National Association of Realtors® found that LGBTQ+ homebuyers were more likely to make sacrifices and cut spending during the homebuying process, and also more likely to have student loan debt (35%) compared to their non-LGBTQ+ peers (20%).