According to National Association of Gay and Lesbian Real Estate Professionals (NAGLREP), 43 percent of potential LGBTQIA+ home buyers in the United States are anxious about how welcoming the community and neighbors may be.

We sat down with real estate experts from the LGBTQIA+ community David Caporini, VP of Mortgage Lending at Guaranteed Rate Affinity, Tommie Wehrle, a Senior Leadership Instructor for Better Homes & Garden Real Estate, who emphasizes allyship, and Jamie Zapata, Sales Associate at Coldwell Banker D'ann Harper REALTORS and the first out and open transgender real estate agent in San Antonio, TX. 

The group weighed in with their thoughts on how agents can bring more understanding around:

• What real estate agents can do to promote inclusivity for the LGBTQIA+ community

• Which advocacy efforts and legal protections currently exist

• What challenges the LGBTQIA+ community are still facing on the path to homeownership

Understanding the Landscape

According to research conducted by Freddie Mac, the homeownership rate among people who identify as LGBTQIA+ is 51%, compared with 71% among people who identify as both straight and cisgender. Historically, LGBTQIA+ individuals have faced discrimination and barriers when navigating the housing market. Legalization of same-sex marriage had a profound impact on home purchasing trends. As David explains, “Once marriage equality became a reality, we saw an uptick in same-sex couples seeking to buy homes together.” With marriage equality, LGBTQIA+ couples gained access to legal protections, inheritance rights, and tax benefits, making it easier for LGBTQIA+ couples to invest in property.

As same-sex marriages increase, more LGBTQIA+ people become parents, leading to a desire for stable housing and long-term financial security.  “A lot of LGBT people just want the same exact thing that non-LGBT people want,” Jamie said. “They want to live in a nice neighborhood and have kids and start families." Her perspective underscores the universal desire for a safe and welcoming home, regardless of sexual orientation or gender identity.

Despite legal advancements, housing discrimination against members of the LGBTQIA+ community persists. Tommie shared instances of discrimination she has witnessed:

“I had a listing, a rental listing. It was a 1-bedroom condo, and the people that were moving out was a couple. I got a great [offer]... when I showed the application to my client, they said, oh, you know what? I don't believe in 2 women sharing the same bedroom. And I said, ‘Okay, well, here's the deal I'm terminating our contract.’”

Additional Unique Challenges

Transgender individuals encounter other unique challenges during real estate transactions as well. Disclosure of personal information related to their transition, such as verifying employment under a different name or addressing title issues due to name discrepancies, can be daunting.

Tommie noted, “If a person who's trans and has no prior credit history [in their current name]. You don't have the proper identifications to apply for what you want to apply for, or you don't have the right paperwork, or you live in one of the 27 States where sexual orientation and gender identity is not protected. It could be a deterrent because you don't want to face that discrimination.”

Jamie added, “Just that whole process of being outed and having to share that with people you don't know is very uncomfortable for some people.”

David had some excellent advice for anyone facing this situation: “Notify each of the three major credit repositories, TransUnion, Equifax, and Experian, and send them your new ID and proof of legal name change, and they will update each credit profile. Then going forward anytime you apply for credit; it will validate that new name that matches that social security number.”

Creating Inclusive Real Estate Practices

As real estate agents, understanding the unique challenges and opportunities faced by marginalized communities is fundamental. Our experts agree that real estate agents play a crucial role in fostering inclusivity for those in the LGBTQIA+ community.

Tommie says that the Alliance Certified Ally™ course (LGBTQ+ Real Estate Alliance, 2024), is a good channel in which real estate professionals can participate. "The certification program is a great way for allies to show their support and commitment to diversity. It's about creating an inclusive environment for everyone," she said. Her emphasis on allyship underscores the need for collaboration across the industry.

Advocacy Efforts and Legal Protections

Throughout the years, there has been some progress in establishing legal protection and making discrimination in lending against a person because of sexual origin illegal.  David Caporini, explains, “The lenders are not allowed to discriminate. There’s ECOA - the Equal Credit Opportunity Act in place.”  ECOA prohibits lenders from discriminating against applicants based on sex, including sexual orientation and gender identity.

In addition, the Fair Housing Act (FHA) and the Equal Access Rule are critical safeguards against discrimination. The FHA ensures equal access to housing regardless of gender identity, while the U.S. Department of Housing and Urban Development (HUD) enforces the Equal Access Rule, which ensures that LGBTQIA+ individuals have equal access to HUD programs and services.

Many states and municipalities have additional laws protecting homebuyers and mortgage borrowers from discrimination. Tommie emphasizes the importance of knowing these rights: “Educate yourself about your legal protections. Don’t hesitate to seek legal recourse if you face discrimination.” A great resource for agents who face this scenario is The LGBTQ+ Real Estate Alliance, which tracks proposed anti-LGBTQIA+ legislation by state. (LGBTQ+ Real Estate Alliance, 2024).

How can you do your part?

Strive to be an LGBTQIA+-friendly real estate agent. Educate yourself on the unique challenges faced by LGBTQIA+ clients and guide them through the process. Whether it’s finding inclusive neighborhoods or navigating paperwork, being an informed advocate makes a difference. There are plenty of additional actions you could take, for example:

• Connecting with LGBTQIA+ organizations, such as LGBTQ+ Real Estate Alliance and NAGLREP to build a supportive network for you and your clients.

• Using affirming language in marketing materials and client interactions to signal a welcoming environment.

It’s important for those in the title and real estate industries to continue the dialogue of honoring LGBTQIA+ history, visibility, and resilience. We should also take time to recognize the significance of home ownership within this community. Having an ongoing dialogue encourages LGBTQIA+ individuals to embrace their authentic selves, and for many, that includes finding a place to call home.

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This material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy. This material is not intended to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice. 

About Melanie Dawn Molina Wood

Melanie Dawn Molina Wood is the Educational Program Coordinator for Real Source University for Anywhere Integrated Services. Melanie Dawn has worked in the real estate industry since 1985; and brings her experience and engaging teaching style to you with a series of high energy, educational real estate classes designed to boost your real estate knowledge and grow your business.