Generation Z (those born roughly between 1997 and 2012) boasts unprecedented representation in the Lesbian, Gay, Bisexual, Transgender and Queer (LGBTQ+) community. Gallup recently shared that 23% of U.S. adults under 30 years old self-identify as LGBTQ+.
What does this mean for so-called “zoomers” home-buying plans, including the 23% that are part of the LGBTQ+ community?
The LGBTQ+ Real Estate Alliance recently shared its sixth Annual LGBTQ+ Real Estate Report, which compiled responses from 400 surveyed individuals (73.5% of respondents were LGBTQ+, 23.9% were heterosexual and 2.6% did not say.) Respondents were asked to compare and contrast how two hypothetical Gen Z people, identical except that one is heterosexual and one is LGBTQ+, would fare in the future.
A majority of respondents said they believe heterosexual Gen Zers are more likely to achieve milestones such as a work promotion or senior leadership or building significant wealth than an LGBTQ+ person. Almost 79% of respondents believed that heterosexual Gen Zers are more likely to receive familial financial support, such as down payment assistance.
“It is clear that more dialogue is needed as LGBTQ+ people are living a different understanding of what is occurring today and what may happen in the future,” said LGBTQ+ Real Estate Alliance President Tommie Wehrle. “The findings should concern everyone involved in housing, real estate sales and public policy.”
Wehrle noted that the proportion of self-identified LGBTQ+ zoomers amounts to 16 million people, and also condemned “policies attacking our community…by the current administration and in statehouses around the nation.” She warned that these will have “severe consequences” for the future, as survey respondents were less likely to rank homeownership as an essential part of the “American dream.”
The results
Respondents also indicated they might expect LGBTQ+ young adults to achieve homeownership at a slower rate than heterosexual ones.
The largest plurality of respondents (41.6%) said they expect heterosexual Gen Zers to become homeowners by age 30-34. Only 33.2% of respondents said they expect LGBTQ+ Gen Zers to become homeowners by that age, while 28.6% said they expect them to become homeowners between ages 35-39.
The top five cited reasons why LGBTQ+ Gen Z buyers might take longer to become homeowners were receiving less financial support from family, housing discrimination or the fear of it, lack of down payment funds, lack of career stability or intention to start a family later.
LGBTQ+ respondents were less likely to value homeownership as a top criteria for achieving the American Dream than heterosexual respondents. Heterosexual people consider homeownership the No. 1 milestone in achieving the American Dream, while for an LGBTQ+ person, the No. 1 milestone is “living in a safe community,” with homeownership ranked as the sixth important milestone.
While 22.6% of heterosexual respondents “definitely” believe homeownership will remain part of the “American Dream” for LGBTQ+ individuals, only 16.8% of LGBTQ+ respondents said the same.
“Our report makes it clear that LGBTQ+ Gen Z adults will likely fall behind in the workforce, acquiring wealth, gaining financial stability and entering homeownership…we cannot afford to leave such a sizable number of people behind,” said Wehrle.
For the full report, click here.
