In 18 of the 26 metro areas studied, no significant difference was detected in the prices of nearby homes sold before and after the construction of a low-income housing development, when compared with similar homes farther from the development but within the same neighborhood. In four of the eight metro areas where significant differences were detected—Boston,
"For children in low-income families, living in a neighborhood with less poverty can have a big impact on mental and physical health as well as long-term earnings throughout their life," said Redfin senior economist
Expensive Neighborhoods in
In general, the more expensive the homes in a neighborhood, the more likely it was that the addition of a low-income housing development resulted in an increase in home prices in the neighborhood. For example, in
"The data suggests that it can be a win-win to put low income housing in expensive neighborhoods, benefiting both current homeowners and low-income residents," explained Bokhari. "Because these projects are being built by private developers, they often have an incentive to identify places that have good prospects for growth. On the flip side, they're also less likely to plan projects in areas that are less desirable."
For homebuyers, economically integrated neighborhoods can be more desirable because they create a more self-contained community where the people who work in the community (teachers, service workers, etc) are able to live in the community.
However, in a lower-priced area like
One possible explanation for the relative weakening of home prices near some new low-income housing developments may be that low-income housing was put in areas that were in the midst of gentrification and rapid price growth. Had a high-end development instead been built in place of the low-income housing, prices might have continued to grow even higher. There are still many unknown factors, but overall this study supports the idea that low-income housing does not degrade property values.
The opposite trend was seen in
"Part of President
To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/low-income-developments-home-values/
Redfin (www.redfin.com) is a technology-powered residential real estate company, redefining real estate in the consumer's favor in a commission-driven industry. We do this by integrating every step of the home buying and selling process and pairing our own agents with our own technology, creating a service that is faster, better and costs less. We offer brokerage, iBuying, mortgage, and title services, and we are the #1 nationwide brokerage website, offering a host of online tools to consumers, including the Redfin Estimate. We represent people buying and selling homes in over 90 markets in
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the
View original content to download multimedia:http://www.prnewswire.com/news-releases/introduction-of-low-income-housing-unlikely-to-affect-nearby-home-prices-301225478.html
Redfin Journalist Services: Isabelle Novak, 414-861-5861, email@example.com