Does Supportive Housing Hurt Property Values?

Fred Schack mentioned that the Furman Institute at NYU has done research o this, so I looked for their report. There’s two versions — the first one here is the shorter report of the findings, the second one is more detailed.

Executive Summary of Impact Study

Impactof Supportive Housing on Neighborhoods_000, written in October 2008.

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2 responses to “Does Supportive Housing Hurt Property Values?”

  1. Kristin Hart

    Here is another study of the impact of supportive housing on a community. This was done by the Urban institute.

    http://www.huduser.org/portal/publications/suppsvcs/support.html

    It analyzed crime statistics and property values:

    “We did identify a strong direct relationship between the rate of disorderly conduct reports and 500 foot proximity to a supportive site.”

    “Overall, we found that the set of eleven supportive housing facilities we analyzed for the price impact analysis was associated with a positive impact on house prices in the surrounding neighborhood. In general, the area within 1,001 to 2,000 feet of any supportive housing analysis site experienced both an increase in general level of prices and upward trend in house prices relative to the prices of similar homes not near such facilities. This reversed a relative decline in house prices (compared to elsewhere in the census tract) that existed in these areas prior to the presence of the supportive housing site. We note that these results were produced by a set of small-scale, special care facilities, with no large sites, correctional facilities, or homeless shelters included.

    While the average relationship between this set of supportive housing facilities and proximate house prices was positive, not all site/neighborhood combinations in Denver experienced the same relationship. When we disaggregated our analysis to measure impacts for different common clusters of sites/neighborhoods, we found that the set of five supportive housing sites located in low-valued, heavily minority-occupied (typically majority Black-occupied) neighborhoods consistently evinced the positive price impacts noted above. By contrast, the site in the highest-value, overwhelmingly white-occupied neighborhood apparently had a negative effect on house prices, as did another (poorly maintained) site in a modestly valued, high-density core neighborhood having 24 percent of its population classified as Hispanic.”

    Note that they only looked at small-scale residences, not huge behemoths like UP is proposing.

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