Measuring the effects of Obergefell v. Hodges: Revisiting same‐sex marriage legalization and mortgage demand

Abstract

The U.S. Supreme Court's 2015 ruling in Obergefell v. Hodges made same‐sex marriage legal in all states. We estimate the effect of this landmark ruling on the mortgage demand of same‐sex couples. Using data on the near universe of mortgage applications, we employ a difference‐in‐differences estimation strategy that compares the mortgage demand from same‐sex and different‐sex couples, before and after the ruling. We find that the ruling increased the mortgage demand from same‐sex couples relative to different‐sex couples by 12% in states where same‐sex marriage was previously unavailable. Interestingly, we also estimate a 15% increase in the mortgage demand of same‐sex couples in states that had already legalized same‐sex marriage prior to the ruling. This suggests that the federal Supreme Court ruling brought greater certainty to same‐sex couples, even in states where same‐sex marriage was already legal. Additionally, we find that the effects were significantly larger for same‐sex female couples compared to same‐sex male couples, consistent with prior literature documenting higher marriage take‐up among women in same‐sex relationships. Our results emphasize the importance of federal Supreme Court rulings over and above similar state‐level legislation in shaping outcomes of vulnerable populations.