The gay effect on New York City real estate

Some of the nation’s most highly valued real estate is located in or near established LGBTQIA+ neighborhoods and vacation destinations. In New York City, Manhattan’s West Village and Brooklyn’s Park Slope are prime examples. But how does a community that often continues to face housing discrimination and housing insecurity, even in liberal-minded cities like New York, help raise property values? This article examines the long and complex history of the LGBTQIA+ community’s impact on the real estate market and highlights just a few of New York City's most sought-after LGBTQIA+ neighborhoods.

Research on the gay effect on property values

Although research exploring the connection between the LGBTQIA+ community and real estate markets dates back to the 1980s, the idea that gays are good real estate was popularized in the early 2000s when urban studies theorist Richard Florida and colleague Charlotta Mellander published an article introducing the concept of the Bohemian-Gay Index. Florida and Mellander argued that when bohemians (i.e., creatives) or gays move into a neighborhood, property values increase. It isn't surprising that Florida and Mellander reached this conclusion since, from coast to coast, there are plenty of LGBTQIA+ neighborhoods that also happen to be located in highly sought-after real estate markets. Still, some economists question whether this is due to a purely causal effect.

Three years after Florida and Mellander published their article on the Bohemian-Gay Index, economists David Christafore and Susane Leguizamon published the findings of a study focusing exclusively on the LGBTQIA+ community's impact on real estate. Like Florida and Mellander, they found a correlation between the presence of gay residents and high property values, but they concluded that the reason why gay is good for real estate values may be more complex.

While many LGBTQIA+ neighborhoods do report higher-than-average property values, Christafore and Leguizamon’s study suggests that this may have less to do with the mere presence of gay residents and more to do with other contextual factors. For example, they found that gays like to reside in "high amenity areas,” which already tend to have higher housing values. In addition, they found that since fewer members of the LGBTQIA+ have children, they tend to have more disposable income available for housing purchases. Finally, Christafore and Leguizamon's study found that the correlation between gays and high property values may not hold across neighborhoods. In fact, while gay residents positively impact property values in liberal neighborhoods, they seem to have the opposite effect in conservative-leaning neighborhoods.

So, do gay residents necessarily raise local property values? In many liberal-leaning urban areas, the correlation may hold true or, as Christafore and Leguizamon suggest, at the very least, a higher proportion of gay buyers may have the resources to purchase homes in neighborhoods where properties already report above-average market values. Still, even if this is true, the gay effect on real estate is likely somewhat exaggerated. As of 2023, members of the LGBTQIA+ community were still less likely to own their own homes than other Americans (more statistics may be found here).

Outdoor dining in NYC with Pride flags in the background

(Pexels - Natalia S)

NYC's top LGBTQIA+ neighborhoods for buyers and renters

Whatever you think about the Bohemian-Gay Index, there is no question that some of New York City's most sought-after neighborhoods for buyers and renters are also LGBTQIA+ destinations.

West Village

Perry Street in the West Village

By the time the Stonewall Wall riots took place in 1969, the West Village had already been a gay destination for decades. While the far West Village was, until the 1980s, a less desirable neighborhood for renters and buyers and, by extension, more affordable, since the early 2000s, even the outer reaches of the West Village have become desirable for buyers and renters.

But the West Village isn't just a popular destination for the gay community. In 2019, Architectural Digest declared one block on West 11th Street the most "star-studded" address in New York City. More recently, the neighborhood has been home to several of Manhattan's highest-priced sales and deals, and a mega-mansion at 105-107 Bank Street recently sold for $70 million.

167 Perry Street, #1D/2D
$1,295,000

West Village | Cooperative | 1 Bedroom, 1 Bath

167 Perry Street, #1D/2D (Compass)

From the Listing: A truly refined one-bedroom duplex, Residence 1D/2D is a masterstroke of thoughtful design execution, awaiting its very first occupants after a comprehensive, highly considered renovation. The primary level is anchored by an open chef’s kitchen finished with a never-used Miele gas range and oven, polished quartz countertops and backsplash, a panelized Liebherr refrigerator & Miele dishwasher, and Leicht custom cabinetry. See floor plan and full details here.

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104 Bedford Street, #2DE
$2,750,000

West Village | Cooperative | 2 Bedrooms, 2 Baths

104 Bedford Street, #2DE (Corcoran Group)

From the Listing: Nestled on one of the most coveted, landmarked blocks, this stunning two-bedroom, two-bathroom home is the epitome of downtown charm. With impeccable design and finishes that earned a feature in Architectural Digest, every detail has been considered. Enter into a gracious living room anchored by one of two wood-burning fireplaces and bathed in natural light through oversized windows. See floor plan and full details here.

150 Charles Street, #M2
$21,500,000

West Village | Condominium | 5 Bedrooms, 5.5 Baths | 4,400 ft²

150 Charles Street, #M2 (Serhant)

From the Listing: M2 at 150 Charles Street is an extraordinary 4,301-square-foot triplex boasting 5 bedrooms, 5 full bathrooms, 2 powder rooms, a private terrace, and a deeded parking spot. Townhome-style living ad resort-style amenities-less than a block from Hudson River Park and moments from endless trendy dining and nightlife options. Residents are greeted by a sun-splashed double-height mezzanine foyer. See floor plan and full details here.

Chelsea

Chelsea has long been one of the city's gayest neighborhoods. In fact, as the gay community started to get priced out of the West Village, as early as the 1970s, both gay residents and gay business owners started to migrant north. As a result, long before two gay men founded Friends of the High Line in the late 1990s, leading the way for the structure's transformation into an elevated park and eventually leading to the elevation of real estate values throughout the neighborhood, Chelsea was an established LGBTQIA+ destination. Today, Chelsea is still known as an LGBTQIA+ neighborhood and is highly sought after, especially by buyers looking to invest in resale townhouses or new luxury condos.

London Terrace Towers, #17D
$1,595,000

Chelsea | Cooperative | 1 Bedroom, 1 Bath | 850 ft²

London Terrace Towers, #17D (Corcoran Group)

From the Listing: Perched high up on the 17th floor of the iconic London Terrace Towers at 470 West 24th Street is your opportunity to own and enjoy the sole one-bedroom apartment in the building with a terrace. The word that best describes apartment 17D is simply this: TURNKEY! No detail was overlooked and no expense spared in its renovations which include two mini-split cooling systems. See floor plan and full details here.

500 West 21st Street, #2G
$3,995,000

Chelsea | Condominium | 2 Bedrooms, 2.5 Baths | 1,589 ft²

500 West 21st Street, #2G (Corcoran Group)

From the Listing: Welcome to Residence 2G, a sun-drenched corner two-bedroom offering a rare perspective on West Chelsea. Overlooking the landmarked gardens and historic architecture of the General Theological Seminary, the home enjoys protected treetop views, exceptional southeastern light, and a sense of serenity seldom found in Manhattan. Here, timeless surroundings and contemporary luxury come together to create an inviting urban retreat. See floor plan and full details here.

One High Line, #W23C
$10,885,000

Chelsea | Condominium | 3 Bedrooms, 3.5 Baths | 2,639 ft²

One High Line, #W23C (Corcoran Sunshine Marketing Group)

From the Listing: West 23C is a corner 3-bed, 3.5-bath home and the final opportunity to own this sought-after line. With open northern and western exposures, the residence is framed by sweeping skyline and Hudson River views. A spacious corner great room anchors the home, complemented by a custom Bulthaup kitchen finished in White Princess Quartzite and outfitted with a full Gaggenau suite. See floor plan and full details here.

Park Slope

Like Manhattan, Brooklyn is home to many LGBTQIA+-friendly communities. One of the most established LGBTQIA+ communities in Brooklyn is Park Slope. Unlike the West Village and Chelsea, which were historically synonymous with nightlife, Park Slope was known as one of the most family-friendly LGBTQIA+ neighborhoods in North America long before gay adoption or gay marriage were legal. Home to a high surplus of townhouses, amazing services, and great public schools, Park Slope isn't just a sought-after location for 21st-century queer families but for all families.

222 16th Street, #3F
$1,995,000

Park Slope | Condominium | 3 Bedrooms, 2 Baths | 1,252 ft²

222 16th Street, #3F (Douglas Elliman Real Estate -)

From the Listing: Residence 3F is a thoughtfully designed three-bedroom, two-bath residence offering a highly functional layout, refined finishes, and exceptional value within one of Brooklyn's most sought-after neighborhoods. Combining generous living spaces, three well-proportioned bedrooms, and private outdoor space, the home presents a rare opportunity to enjoy the comfort and flexibility of a true three-bedroom condominium residence. See floor plan and full details here.

204 Berkeley Place, #1
$3,500,000

Park Slope | Condominium | 3 Bedrooms, 2 Baths | 2,000 ft²

204 Berkeley Place, #1 (Sothebys International Realty)

From the Listing: Occupying the parlor and garden levels of an elegant two-unit brownstone on North Park Slope's Gold Coast, Residence 1 at 204 Berkeley Place offers the scale and refinement of a London townhouse in one of Brooklyn's most desirable locations. The parlor floor is anchored by a living room with direct access to a private landscaped garden. See floor plan and full details here.

60 Montgomery Place, #TH
$13,500,000

Park Slope | Townhouse | 6+ Bedrooms, 6+ Baths | 4,950 ft²

60 Montgomery Place, #TH (Douglas Elliman Real Estate)

From the Listing: 60 Montgomery Place is an awe-inspiring, extra-wide single-family townhouse that sets a new standard for opulence in the heart of Park Slope. Following a meticulous and thoughtful renovation, the house spans five magnificent light-filled stories and is crowned by multiple private outdoor landscaped sanctuaries, embodying the pinnacle of indoor-outdoor living. See floor plan and full details here.

In this article:

Research on the gay effect on property values

NYC's top LGBTQIA+ neighborhoods for buyers and renters

West Village

167 Perry Street, #1D/2D
$1,295,000

Select which properties are of interest to you:

104 Bedford Street, #2DE
$2,750,000

150 Charles Street, #M2
$21,500,000

Chelsea

London Terrace Towers, #17D
$1,595,000

500 West 21st Street, #2G
$3,995,000

One High Line, #W23C
$10,885,000

Park Slope

222 16th Street, #3F
$1,995,000

204 Berkeley Place, #1
$3,500,000

60 Montgomery Place, #TH
$13,500,000

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The gay effect on New York City real estate

In this article:

Research on the gay effect on property values

NYC's top LGBTQIA+ neighborhoods for buyers and renters

Select which properties are of interest to you:

Select which properties are of interest to you:

Listings in this article

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Brick is Back: NYC developments revive the warmth of masonry; See Morris Adjmi's new design for 277 Canal Street

NYC Contracts: $80M trophy penthouse signed at 80 Clarkson; One High Line's last penthouse finds a buyer