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Low-Income Housing Shown to have No Adverse Effect on Nearby Property Values

Photo credit to Elise Amendola/Associated Press

A recent study has brought forth evidence that challenges the notion that low-income housing negatively affects surrounding property values. In fact, the study found that low-income residencies have virtually no impact on surrounding property values.

The Trulia study focused on more than 3,000 properties using the federal low-income housing tax credit program in the 20 most expensive U.S. metropolitan areas. The researchers then analyzed the fluctuation in home values for properties within a 2,000-foot radius of those receiving the tax credits.

The researchers found that there was no significant difference in value between those properties closest to the low-income units and those further away.

Although the data showed that low-income properties do not affect nearby property values, there were a few cities that did not follow that trend. In Boston and Cambridge, Massachusetts, data showed that property values closest to low-income housing increased at a slightly slower pace than property values further away, while in Denver, Colorado, the property values closest to low-income housing grew at a faster rate.

Despite these outliers, the study showed that, overall, well-maintained low-income housing properties have no effect on nearby property values in markets that are not already depressed.

Read more about the study here.

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