How Homo Households Affect House Prices
It may seem ridiculous to imagine that there is any connection between the number of same-sex households and house prices, but David Christafore from Konkuk School and Susane Leguizamo from Tulane Varsity found it topical, and they showed in their work about how homosexuals influence home pricesthat they were right. House prices reflect individuals ' preferences for school quality, crime statistics, the racial composition of the community, and other social traits, so why they could not they reflect the level of toleration for gays and lesbians as well?
Liberal Versus Conservative Areas
They found that the level of the neighbourhood's social liberalism has a big effect on the consequences of an increase in homo households on home price. In liberal areas, the presence of same-sex couples affects house prices certainly, while in conservative areas, they cause a reduction in costs. They noted that in very conservative areas, the addition of another same-sex couple for each 1,000 homes was associated with house prices decreasing by 1 per cent. This is a significant impact.
Apparently the results are driven by male couples. Same-sex female households don't typically face the same prejudices as same-sex male couples, and that is strongly mirrored in their effect on house prices. The influence of male homes is higher than general results skewed by higher toleration for lesbians.
The explanations for these effects are not only biases against gays. Families like living in areas where other families live and their kids can play together, so preference for married couples can play a major role. Nonetheless the work found that the effect of unmarried couples in conservative areas is positive, not negative. A different reason could be the positive result of same-sex homes in liberal neighbourhoods may be caused by specifics of these areas, especially positives of increased diversification. The authors say that the magnitude is analogous in both conservative and liberal areas and effectively cancel one another out, but instinctively liberal areas provide more opportunities and are likely more developed, so home prices are far more powerfully influenced by these effects as well.
Liberal Versus Conservative Areas
They found that the level of the neighbourhood's social liberalism has a big effect on the consequences of an increase in homo households on home price. In liberal areas, the presence of same-sex couples affects house prices certainly, while in conservative areas, they cause a reduction in costs. They noted that in very conservative areas, the addition of another same-sex couple for each 1,000 homes was associated with house prices decreasing by 1 per cent. This is a significant impact.
Apparently the results are driven by male couples. Same-sex female households don't typically face the same prejudices as same-sex male couples, and that is strongly mirrored in their effect on house prices. The influence of male homes is higher than general results skewed by higher toleration for lesbians.
The explanations for these effects are not only biases against gays. Families like living in areas where other families live and their kids can play together, so preference for married couples can play a major role. Nonetheless the work found that the effect of unmarried couples in conservative areas is positive, not negative. A different reason could be the positive result of same-sex homes in liberal neighbourhoods may be caused by specifics of these areas, especially positives of increased diversification. The authors say that the magnitude is analogous in both conservative and liberal areas and effectively cancel one another out, but instinctively liberal areas provide more opportunities and are likely more developed, so home prices are far more powerfully influenced by these effects as well.