Affordable Housing Has Positive or No Impact on Property Values, Review Finds
The housing shortage is fueled, in part, by resistance to building low-income or affordable housing in wealthier neighborhoods. A-Mark Foundation gathered research on how affordable housing affects home prices — and the results are not what many people might expect. The report is now available to read at www.amarkfoundation.org: “What Is the Impact of Low-Income Housing on Property Values?”
Research studies into the impact of low-income housing on neighborhood property values have generally concluded that there was either no impact or a positive impact on property values.
Even in studies where results were mixed, some positive impacts on property values were found. Of the 13 studies in A-Mark’s report, seven found that when low-income housing was built, property values in the neighborhoods increased.
Three studies in A-Mark’s report showed that building low-income properties has different impacts depending on the type of neighborhood. Two of those studies concluded that low-income housing had a negative impact on property values if built in affluent or higher-income areas, but a positive impact if built in areas with lower-income residents or a lack of existing investment. Another study, however, had the opposite conclusion.
Rob Eshman, A-Mark Foundation CEO, wrote about the report’s findings in an article for the Los Angeles Times titled, “Stop worrying, NIMBYS — affordable housing shouldn’t squash your property values.”
In his column, Eshman began with the observation that in his Venice, Calif., neighborhood, affordable housing did not impede the rise in home values. He interviewed California housing experts and developers, who spoke about challenges in getting wealthier neighborhoods to accept low-income housing even though their fears are likely unfounded.
“My family’s neighborhood may be an outlier,” Eshman wrote, “but at least for the last three decades, it has also served as vibrant proof that the notion that affordable housing lowers property values is overblown, if not flat-out wrong.”
A-Mark also created a 10-question affordable housing quiz that tests readers' knowledge on low-income housing and property values to accompany the report.