Nowhere has the legalization of same-sex marriage in Massachusetts had more of an impact than in Provincetown, a small town on Cape Cod, which for decades has been a popular vacation destination for gays.
After the May 2004 State Supreme Court ruling legalizing same-sex marriage, hundreds of gay couples flocked to Provincetown to get hitched. With its picturesque waterfront and unspoiled beaches, the town is an ideal setting for an outdoor wedding. By the end of December 2004, the town of about 3,400 permanent residents had issued 1,647 marriage licenses to same-sex couples.
These days the legalization of gay marriage – and Provincetown’s place at the center of the issue – are having a spin-off impact on the local real estate market as more gay couples buy vacation homes.
“Gay marriage caused a bit of a boom for businesses generally. More and more people were coming down here, and that supports rents and home prices,” says Tom Schoepfer, a broker for RE/MAX Classic. “Our primary markets have been New York, New Jersey, Connecticut and Massachusetts.”
Indeed, many brokers are promoting their friendliness to the gay community. Many include the tag “gay-owned” in their advertising; some also belong to one of the national promotional networks, including Gay Realty Network or GayRealEstate.com. These organizations have a combined national membership of about 2,000 real estate and mortgage brokers who are charged a fee for inclusion in a list of professionals friendly to gays.
“It makes sense for us because so much of our market – buyers and sellers – is gay men and women,” says Jim Sheehan, a broker at Coldwell Banker Pat Shultz Real Estate who is also a member of the Gay Realty Network.
Second homes make up the majority of properties in Provincetown, which sees its population spike to around 60,000 in summer. Each year, about 320 vacation homes are sold. No figures are kept on the number of those bought by gays, but several local brokers say gay buyers make up about 90 percent of Provincetown’s vacation home market. These buyers use these properties as both vacation homes and investment properties which they frequently rent to other gay visitors.
The town is so popular with gay vacationers, including those on honeymoons, that it’s often called the “gay Niagara Falls.” Indeed, some observers claim that during the summer, rainbow flags, a symbol of gay tolerance, are more ubiquitous than American flags.
Downtown Provincetown, which is devoid of big national chain stores, is characterized by quirky and quaint shops. The seasonal residents typically arrive from anywhere within 300 miles, according to people familiar with local real estate.
Provincetown also has a smattering of straight buyers, especially people who enjoy the town’s widespread tolerance. Artists and writers are a strong presence.
“It’s a very open and welcoming place [where] everyone is accepted,” says Dan Hochman, an agent with Pied Piper Realty in Provincetown.
Since 2000, the housing market in Provincetown has been on a roller coaster. When the decade began, the median sale price for a single-family home was $350,000, according to data collected by the Warren Group real estate firm. By 2005, it had jumped to $680,000, but plunged to $530,000 the next year.
In 2007, it started climbing again and was up to $594,500 as of the end of October.
There is very little new construction in the town; two-thirds of Provincetown’s land is part of the protected Cape Cod National Seashore. In recent years, there has been a growing trend toward conversion of guest homes and motels to condominiums and second homes.
Condo prices start at around $225,000 for 300-square-foot studios, increasing to between $300,000 to $350,000 for one-bedrooms and $375,000 to $500,000 for two-bedrooms, according to Rick Tourgee, an agent with Century 21 Shoreland in Provincetown.
While Provincetown is becoming increasingly a community of second homeowners and part-time residents, the rest of Cape Cod is shifting in the other direction. The Cape is attracting more year-round residents, both retirees and people who commute to metropolitan Boston.
According to the Warren Group’s data, home prices on Cape Cod have generally followed the rest of Massachusetts downward in the past year. For Cape Cod, sales were down 2.51 percent for the first 10 months of last year, while prices fell 6.67 percent. Statewide, sales were down 6.9 percent, and prices 4.41 percent.
“The moderation in price has provided a lot of opportunity,” says Doug Azarian, the 2007 president of the Massachusetts Association of Realtors and a broker on Cape Cod. “There are more homes available for under $300,000. It has helped first-time buyers and first-time investors.”