Thursday, May 23, 2019

Gayborhood Home Premiums Top 200% in Some Markets

Gayborhoods-cultural enclaves that have long provided safety, community and belonging for LGBTQ+ people-are so in-demand that, in dozens of markets across the country, you'd pay a hefty premium to live there.

We're talking big money; in some cases, hundreds of thousands of dollars.

Take West Palm Springs, Calif., where more than 9% of all homes are headed by same-sex couples. A typical home there costs $1.2 million-$860,300 more than a typical home in the Riverside metro area, which costs $369,200.

That 233% premium for a typical home in West Palm Springs isn't even the largest. A Midwest gayborhood in Cleveland, also coincidentally named Riverside, carries a surcharge of nearly 294%, the largest premium among 40 metros included in Zillow's analysis.

There are, of course, a few gayborhoods where homes are cheaper than the areas where they are located. For instance, a typical home in downtown San Jose, Calif. (the closest that area has to a gayborhood-with 1.1% of households headed by a same-sex couple), costs $341,300 (38%) less than the $895,200 price tag on a typical home citywide.

But, overwhelmingly, homes in gayborhoods come at a premium.[1] Ironically, that surcharge puts the neighborhoods out of reach for many LGBTQ+ people, especially women and people who are transgender and gender nonconforming. Those groups, on average, have lower incomes than cisgender gay men.

The reasons for the surcharge are many, and stem largely from the role the LGBTQ+ community has played in the gentrification of once-decaying urban centers.

During much of the 1970s and 1980s, people left cities in droves for outlying suburbs, driving down property values in urban centers. Disadvantaged populations, including LGBTQ+ people, moved in for the cheaper rents and a sense of community, becoming what sociologist Sharon Zukin describes as gentrification's vanguard. They started new businesses and created thriving and tolerant neighborhoods that attracted more affluent LGBTQ+ people, who in turn helped the communities prosper further.

The amenities and jobs near and in those urban centers made gayborhoods especially attractive places to live,[1] beginning in the 1990s. "Home prices in historically gay neighborhoods have steadily outperformed average prices for the metros in which they're located" for several decades, according to the 2015 New York Times bestseller "Zillow Talk: The New Rules of Real Estate."

That cycle of urban revival or gentrification is evident in what is now the San Francisco metro area's most expensive gayborhood, The Castro District, where more than 8% of households are headed by a same-sex couple.

In the '70s, The Castro was 8.1% less expensive than the city on average. By 2000, real estate prices in The Castro were nearly 40% above the average for the San Francisco metro.

Today, a typical home in the southwest corner of The Castro by Mount Olympus-where nearly 14% of households are same-sex couples, the highest among the analyzed U.S. metros-costs $1.8 million. That's more than 30% higher than the $1.35 million price tag on a typical home in San Francisco at large.

Zillow calculated the premiums associated with each major market's gayborhood by mapping same-sex couple households by census tract, matching those tracts to neighborhoods, and comparing typical home values between those neighborhoods and each city/metro as a whole.

Here's a snapshot of some of the premiums associated with some of the nation's most expensive gayborhoods:

Los Angeles

L.A. is a rare case, in that the city limits don't include nearby West Hollywood, which has the highest concentration of same-sex couple households in the metro area (4.75%). A typical home in West Hollywood is valued at $203,600 (33%) more than one in L.A. county.

The west side of the Norma Triangle neighborhood in West Hollywood, where 11.2% of households are same-sex couples, has a $468,000 (76%) premium compared to L.A. county.

Miami-Fort Lauderdale

Nearly 13% of households are same-sex couples in the western edge of Wilton Manors, a city north of Fort Lauderdale that boasts of being "The Second Gayest City in America."  

A typical home in Wilton Manors will run you $89,300 (31%) more than if you'd bought one in the Miami-Fort Lauderdale metro area, where the typical home costs $284,900.

New York

Gayborhoods in New York are dotted throughout the city and metro area, but the highest concentrations of same-sex couple households are located throughout Midtown, the Garment District, and the West Side of Manhattan from West 74th Street to Christopher Street, including the Upper West Side, Chelsea, Hell's Kitchen and the West Village (outlined in red on the map below).

The typical home in this broad swath of Manhattan with higher concentrations of same-sex couple households is valued at $249,900 (20%) more than the typical Manhattan home, and $796,549 (117%) more than one in New York City as a whole.

 

Chicago

The higher concentrations of Chicago's same-sex couple households run along the northeastern side of the city in the communities of Edgewater, Uptown, Boystown and Lakeview (outlined in red below). The median home premium on this block of neighborhoods, compared to the city as a whole, is $69,106 (30%).

 

Seattle

Capitol Hill is Seattle's historic gayborhood, but the Central District, concentrated around Minor and Yesler, has a higher percentage of same-sex couple households. A Seattle Times analysis in 2014 found that while most other Seattle neighborhoods saw an increase in same-sex couple households between 2000 and 2012, Capitol Hill, which has a large number of LGBTQ+ establishments, saw a 23% drop.

The premium for a home in the Central District (outlined in red below) is only $3,411 (0.5%) compared to the city as a whole, likely in part because many same-sex couples relocated to the neighborhood and out of Capitol Hill as prices there, and in the city as a whole, skyrocketed in the past decade.

 

Washington, D.C.

While same-sex couple households are spread throughout the D.C. area, they are especially concentrated near Logan Circle. Segments of Dupont Circle, Shaw and Ledroit Park (outlined in red below) all have higher percentages of same-sex couple households than the District as a whole.

The typical premium on a home in those areas: $117,100, or 20%.

Atlanta

Midtown holds the title of Atlanta's gayborhood, and has a solid representation of gay bars. The typical home there costs $44,500 (17%) more than the typical Atlanta home.

 

Housing Market (by city unless specified) Gayborhood % Same-Sex Couples Gayborhood Home Value Market Home Value Gayborhood Premium
New York West South-Central Manhattan (Upper West Side to West Village) 3.43% $1,478,149 $681,600 116.9%
Los Angeles County West Hollywood 4.75% $822,200 $618,600 32.9%
Chicago Edgewater to Lakeview 3.70% $299,506 $230,400 30.0%
Dallas Oak Lawn 2.29% $322,900 $217,000 48.8%
Philadelphia Area Surrounding Lombard-South Station 3.47% $550,048 $160,900 241.9%
Houston Neartown – Montrose 2.90% $514,000 $187,800 173.7%
Washington, D.C. Logan Circle and Surrounding Areas 3.97% $697,200 $580,100 20.2%
Miami-Fort Lauderdale Metro Wilton Manors 8.82% $374,200 $284,900 31.3%
Atlanta Midtown 2.95% $305,700 $261,200 17.0%
Boston Meeting House Hill 7.92% $640,600 $603,600 6.1%
San Francisco Castro 8.64% $1,767,128 $1,353,500 30.6%
Detroit Metro Pleasant Ridge 5.58% $330,100 $162,200 103.5%
Riverside Metro West Palm Springs 9.21% $1,229,500 $369,200 233.0%
Phoenix South Central Encanto 6.37% $442,400 $242,600 82.4%
Seattle Central District (Minor, Madison Valley, Leschi) 2.98% $729,911 $726,500 0.5%
Minneapolis Bryn Mawr 7.59% $406,000 $267,900 51.5%
San Diego North Banker’s Hill 10.08% $792,400 $632,600 25.3%
St. Louis Shaw – South Grand 3.78% $238,126 $119,500 99.3%
Tampa-St. Petersburg Metro Southeast Gulfport (small city outside of St. Petersburg) 7.58% $236,700 $214,300 10.5%
Denver Golden Triangle 4.23% $512,700 $394,735 29.9%
Portland Northwest, West of 23rd 6.33% $850,100 $425,500 99.8%
Charlotte Plaza Midwood 4.66% $470,800 $225,500 108.8%
Sacramento Northern Land Park 2.63% $553,900 $327,200 69.3%
San Antonio South Arena District/Southeast Denver Heights 4.04% $111,500 $176,800 -36.9%
Orlando Audubon Park & Coytown 5.36% $307,200 $241,800 27.0%
Cincinnati Clifton 2.05% $306,600 $146,400 109.4%
Cleveland Riverside 3.10% $221,000 $56,100 293.9%
Kansas City Longfellow 5.68% $251,300 $394,735 -36.3%
Las Vegas East Paradise 4.90% $217,510 $276,500 -21.3%
Columbus Victorian Village 4.75% $375,800 $156,200 140.6%
Indianapolis Overlap of Broad Ripple and Meridian Kessler 5.80% $334,600 $144,200 132.0%
San Jose, Calif. Downtown 1.12% $553,900 $895,200 -38.1%
Austin Galindo 3.36% $463,800 $368,800 25.8%
Virginia Beach Metro Lafayette-Winona, Norfolk VA 2.65% $224,200 $230,200 -2.6%
Nashville Lockeland Springs 3.08% $472,700 $266,000 77.7%
Milwaukee Honey Creek Manor 2.26% $146,200 $123,200 18.7%

 

Methodology

  • To produce the table of gayborhoods, this research mapped concentrations of same-sex couple households and Zillow Home Value Index by census tract. The percentage of same-sex couples in each tract were gathered from the American Community Survey 2013-2017 dataset made accessible by IPUMS.org. Census tracts and groupings with the highest percentages of same-sex couple households were matched to the neighborhood that best contained them. Tracts with a very small number of households were not included in the analysis.
  • The concentration of couples in more affordable neighborhoods with fewer gay bars and amenities illustrate a possible shortcoming of Census's same-sex couple data: It is likely to overrepresent older LGBTQ households who are more likely to be displaced to more affordable areas and out of amenity-rich spaces.[2]
  • The lack of a question in the American Community Survey on sexual orientation and gender identity means that single LGBTQ people cannot be identified. As many of the above metros show, this can lead to gayborhoods that are likely to have high concentrations of LGBTQ singles being invisible on the map-often moving gayborhoods to more affordable and suburban parts of major metros.

 


[1] High percentages of same-sex couple households are unlikely to cause high home price premiums. Instead, because they are often located in or near urban cores, their proximity to work centers and amenities is likely to be more associated with the premiums.

[2] Using same-sex couple households, which is the measurement made avalable by the U.S. Census Bureau, is a workaround to the absense of a question about sexual orientation and gender identity. Same-sex couple households omit singles and generally skew towards older LGBTQ populations.

The post Gayborhood Home Premiums Top 200% in Some Markets appeared first on Zillow Research.



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