Are black neighborhoods less welcoming to homosexuals than white neighborhoods?

•We analyze the inuence of same-sex couples on house prices.•The inuence is positive in predominately white areas.•The inuence is lower in areas with higher concentrations of black residents.•In black areas the inuence is negative, implying prejudicial attitudes.•This suggests that areas with more blacks are less welcoming to same-sex couples.

Analysts of survey data suggest that blacks are less approving of homosexuality than whites. We empirically test this hypothesis by analyzing the influence of homosexuals on house prices in neighborhoods with varying concentrations of black residents. We find that an additional homosexual couple is associated with a decrease in house prices in predominantly black neighborhoods, but an increase in house prices in predominantly white neighborhoods. Although this association is present for neighborhoods with extremely high concentrations of blacks, the net effect is positive for most neighborhood compositions.