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Gayborhoods see bigger premiums for home buyers

Hillcrest has a great Pride Score, but decreased in Home Value Premium.

A study conducted by Real Estate company Trulia and dating site OK Cupid found that premiums in some gay neighborhoods are higher than in other areas.

The cost of a home in LGBT areas, or “Pride neighborhoods,” are substantially higher than they were five years ago.

The numbers come from census data of gay couples and information provided by OK Cupid for gay singles.The culminated numbers were then given an informal  "Neighborhood Pride Score." 

The most popular "Pride neighborhoods"  with high Pride scores are West Hollywood, with three-quarters of the people being in same-sex relationships or seeking one.

Hillcrest San Diego was fifth overall (34.9% gay singles, 20% in relationships), just behind San Francisco’s Castro district, Uptown in Dallas, and Palm Springs.    

Comparing today's housing prices in some of these areas to that of 2012, revealed an average increase of  36.8% per square foot.

San Diego, however, has gone from a Gay Neighborhood Home Value Premium of 22-percent to 17-percent according to the report

LGBT areas in high demand for homeownership were located in New York, New Orleans, and Boston. 

Interestingly the report found a decrease in demand to live in Miami, Buffalo and San Francisco. 

Finally, the report makes it clear that this is only a hypothesis, but one that shows some promise for increasingly popular and inclusive LGBT neighborhoods: 

Do these results suggest that the presence of gay households in a neighborhood cause home values to increase? Maybe, but the evidence isn’t conclusive.

Since gay individuals and couples tend to have fewer children and higher incomes, they may seek to live in neighborhoods with more desirable amenities (which might help such neighborhoods appreciate at higher rates), or alternatively, their higher disposable incomes may attract such amenities after they move in. From an analytical standpoint, this is a tough chicken-or-egg problem.

As a result, teasing out correlation from causation is a particularly difficult task, so we hesitate to make definitive conclusions from these data.

That said, 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. - See more HERE. ​