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MortgagePoint November 2023

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November 2023 ยป thefivestar.com 79 November 2023 J O U R N A L than non-LGBTQ+ renters to say student loan debt is preventing them from buy- ing a home (18.4% vs 11.4%). This is according to a Redfin-commis- sioned survey conducted by Qualtrics in May and June 2023. The survey was fielded to more than 5,000 U.S. residents. This portion of the report focuses on renter respondents. Subsequent sections focus on recent homebuyers and all respondents. Housing affordability was the top barrier to homeownership for surveyed renters across the board, but LGBTQ+ renters were more likely than non- LGBTQ+ renters to list it as an obstacle. More than half (51.2%) of LGBTQ+ renters said they're unlikely to buy a house in the near future because homes are too expensive, compared with 43.1% of non-LGBTQ+ renters. Similarly, 44.9% of LGBTQ+ renters cited saving for a down payment as an obstacle, versus 35.7% of non-LGBTQ+ renters. For virtually every barrier listed, LGBTQ+ respondents were more likely than non- LGBTQ+ respondents to check the box. One answer choice bucked the trend: LGBTQ+ renters were less likely (13.2%) than non-LGBTQ+ renters (20.1%) to say they're unlikely to buy a home soon simply because they're not interested in owning one. "Young people are often rewarded financially for fulfilling heteronormative expectations around getting married and having kids," Redfin Chief Economist Daryl Fairweather said. "For example, it's common for a bride and groom to receive thousands of dollars in cash gifts when they get married, which they can put toward buying or renovating a home. LGBTQ+ couples, on the other hand, often get married later in life, and may not receive financial support if they've been shut out by their families." LGBTQ+ Homebuyers More Likely to Work Second Job to Fund Down Payment Redfin also surveyed people who bought a home in the past year to see how they saved up for down payments. Recent LGBTQ+ homebuyers were more likely to say they worked a second job (29.1% vs 18.3% of non-LGBTQ+ buyers), sold stock investments (18.5% vs 13.8%), and sold cryptocurrency investments (14.8% vs 8.5%). They were also more likely to save directly from paychecks (46.6% vs 36.5%). The wage gap is likely one reason LGBTQ+ buyers are more likely to take on a second job to fund their down payment; LGBTQ+ workers earn about 90 cents for every dollar the typical worker earns, according to the Human Rights Campaign. Recent LGBTQ+ homebuyers were less likely than non-LGBTQ+ buyers to say they put the proceeds from the sale of another home toward their down payment (23.3% vs 29.5%). That's in part because LGBTQ+ Americans are less likely to own homes. The LGBTQ+ homeownership rate is 51%, compared with 71% for people who identify as both straight and cisgender. LGBTQ+ Ameri- cans skew younger, which is one reason for the disparity, but the income gap may also be at play. Some 38% of LGBTQ+ respondents say they'd only live somewhere with pro- tections against discrimination based on gender and sexual orientation. Nearly two of every five LGBTQ+ respondents (37.9%) said they would only live in a place that has laws ensuring equality-based gender or sexual orientation, compared with 16.3% of non-LGBTQ+ respondents. LGBTQ+ re- spondents were nearly three times as likely to say they'd only live somewhere with laws allowing discussion of LGBTQ topics in schools (33% vs 10.4%). And one-quarter of LGBTQ+ participants (25.9%) indicat- ed that they would only live in a place where gender-affirming care for children is fully legal, versus 11% of non-LGBTQ+ respondents. Racial diversity, strong gun con- trol laws, and legal abortion were also more likely to be "musts" for LGBTQ+ respondents than for non-LGBTQ+ respondents. At a time when LGBTQ+ rights are becoming increasingly restricted, it's not surprising that many LGBTQ+ Ameri- cans only want to live in places with legal protections. Lawmakers in 37 states have intro- duced at least 142 bills to limit gender-af- firming healthcare this year, and 21 states now ban abortion or restrict it earlier in pregnancy than the standard set by Roe v. Wade. In April, Florida expanded its so-called "Don't Say Gay'' law, which bars lessons on gender identity and sexual orientation in the classroom. A separate Redfin report based on this same survey found that 22% of LGBTQ+ people who recently moved believe they were discriminated against based on their sexual orientation during their most recent home search, and another 19% think they may have been discriminated against.

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