This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why You Should Buy a Home in a Gay Neighborhood

Stocks in this article: TRLA

BOSTON ( TheStreet) -- Asking prices on homes are rising as much as two-thirds as fast in gay-friendly urban neighborhoods as in U.S. cities as a whole, property-listing site (TRLA) says.

"There's a long history of gay people being a big part of gentrifying urban neighborhoods," Trulia Chief Economist Jed Kolko says.

Trulia recently analyzed asking prices per square foot of homes listed on its site in America's 100 largest metro areas and in just big-city neighborhoods with larger-than-average gay populations.

The site found that median prices per square foot rose 10.5% over the past year in metro areas as a whole -- but 13.8% in urban areas popular with male couples and 16.5% in neighborhoods with big lesbian populations.

Kolko, who's gay himself, theorizes further that because just 10% of gay-male households and 24% of lesbian couples have children (vs. a 41% rate for U.S. couples as a whole), many can choose small homes in pricey neighborhoods.

"Same-sex couples can spend their housing dollars on more-expensive neighborhoods rather than on more square footage," Kolko says.

Still, the economist cautions that homebuyers shouldn't assume moving to a gay-friendly neighborhood ensures they'll enjoy above-average price gains.

"Who your neighbors are is no guarantee of what's going to happen to your home's value," Kolko says. "You can certainly find examples of same-sex neighborhoods with smaller price increases than predominantly heterosexual ones."

That said, the expert does recommend that landlords and home sellers know whether an area has an above-average gay population so they can market properties effectively.

"If you're looking for a renter or a buyer, understanding the neighborhood that you're in will help with your strategy," Kolko says.

Here's a look at the methodology behind Trulia's study:

  • The site measured annual home-price appreciation by looking at median asking prices per square foot for all non-foreclosed houses and condos listed for sale on in the March 1-May 31 periods of this and last year.
  • Trulia estimated price gains for U.S. cities as a whole by looking at asking prices for all listings in the nation's 100 largest metro areas.
  • The study defined gay-friendly urban neighborhoods as ZIP codes in the 100 largest metropolitan areas where at least 1% of households identified themselves in the 2010 U.S. Census as consisting of either gay or lesbian same-sex couples. That's some three times the rate for America as a whole, where gay and lesbian same-sex couples each account for about 0.3% of the total.
  • Trulia used same-sex-couple figures as a proxy for gay population because the 2010 Census didn't specifically ask people about sexual orientation. Neighborhoods the study defined as having abover-average gay populations ranged from Boston's Jamaica Plain area in the East to San Francisco's Castro District in the West.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs