Premiums in neighborhoods with high percentages of gay residents are skyrocketing, according to a new study.
The study, jointly published by Trulia and OK Cupid, shows housing prices in highly populated areas of gay people are substantially higher on average than they were five years ago.
The study used census data to source gay couples, as well as data collected on OK Cupid for gay singles. It highlighted ‘pride neighborhoods’ with the highest populations of gay people.
This preliminary data highlighted West Hollywood at the top of the list with three quarters of residents in a same-sex relationship or looking to be in one.
Then came San Fransisco’s Castro district with almost two-thirds. Closely followed by the Uptown neighborhood of Dallas, Palm Springs, the Hillcrest neighborhood in San Diego, and the Edgewater and Andersonville areas of Chicago, with 50% of gay households.
The study then compared house prices in 2012 to now and found the overall price per square foot was 28.9% higher in these gay neighborhoods.
The report states: ‘This suggests that the expense to live in communities with higher Neighborhood Pride Scores has risen more strongly than in communities with lower Neighborhood Pride Scores.’
New York topped the list, with a 56%, New Orleans with 52% and Boston 27%.
One possible theory behind the rise is the fact that gay couples have ‘fewer children and higher incomes’, which increases the amenities in the area.
It wasn’t all good news though.
Miami and Buffalo both depreciated in value. And surprisingly, San Fransisco’s premium to buy houses declined by 5%. Several of these areas are selling at a discount.
The report concluded: ‘We can be certain that homeowners in many gay neighborhoods have much to celebrate this June, including the growing equity they’re gaining in their homes.’