Same-sex marriage laws and demand for mortgage credit

Marriage for same-sex couples was only permitted in a limited number of states prior to the U.S. Supreme Court’s 2015 decision in Obergefell v. Hodges. We exploit panel variation across states prior to the Supreme Court decision to investigate the effect of marriage laws on demand for mortgage credit. Identification relies on the fact that states permitted same-sex marriage at different points in time, often through court order whereby the outcome and timing of ruling was unknown. We estimate that states permitting same-sex marriage experienced a 6–16% increase in same-sex mortgage applications after the policy was implemented. Federal recognition of marriage is associated with a stronger effect than state same-sex marriage prior to the repeal of the Defense of Marriage Act, but the effect of state-recognized marriage is also stronger than anti-discrimination policies in housing. Our findings provide important insight not only to the housing choices of same-sex households but the impact of marriage on all households.