There are many misconceptions about the impact of affordable housing on residential neighborhoods and communities. One of the most prominent arguments against adding affordable houses to neighborhoods is that affordable houses lower nearby property values. But what does the research say about this? Do affordable houses actually lower the value of nearby properties?
The answer is no, the addition of affordable housing to neighborhoods does not lower property values. In fact, affordable houses can even raise property values in some cases, but in most cases there is zero impact. A paper by The Center for Housing Policy of NYU’s Furman Center looked at various studies and found that the vast majority concluded the same. But how can affordable houses benefit communities in other ways?
Even if affordable houses don’t increase property values, they do bring benefits to local communities.
Affordable housing can foster economic growth. According to a study by the American Planning Association, every dollar that is invested into affordable housing generates $2.30 in local economic activity. Saving money on housing allows families to increase their spending in other areas, such as with local businesses or organizations. Investing in affordable housing can also boost the national economy. The National Local Income Housing Coalition noted that research shows that the American economy loses about $2 trillion a year due to the housing shortage. Lack of affordable housing impacts a household’s economic mobility, thereby slowing GDP growth.
Investing in housing also creates a lot of jobs, approximately 2,900 full-time jobs for every 1,000 single-family homes that are built according to the National Association of Home Builders. Building a house takes many skilled workers, including plumbers, engineers, architects, construction workers, and electricians. At CMHFH, we partner with local high schools to encourage dozens of students’ interests in skilled trade work by providing them with hands-on building opportunities.
As we’ve discussed before, affordable housing greatly benefits children. With more affordable homes, childhood poverty can be reduced and children can have access to safe, decent, and stable homes. This is associated with better academic performance and better physical and mental health.
There are many reasons to invest in affordable housing. From increased economic activity to more job opportunities, building affordable homes is beneficial to local and national communities. Central Minnesota Habitat for Humanity works to bring these benefits to our communities. You can support this mission by volunteering with us or donating!
Sources:
Furman Center, “‘Don’t Put it Here!’: Does Affordable Housing Cause Nearby Property Values to Decline?” https://furmancenter.org/files/media/Dont_Put_It_Here.pdf
National Low Income Housing Coalition, “Why do affordable homes matter?” https://nlihc.org/explore-issues/why-we-care
Embrace Living Communities, “Economic Benefits Affordable Housing,” https://embraceliving.org/economic-benefits-affordable-housing/
National Association of Home Builders, “Building 1,000 Homes Packs an Economic Punch,” https://www.nahb.org/blog/2020/04/Building-1000-Homes-Packs-an-Economic-Punch
Forbes, “How Whole Communities Benefit From Affordable Housing,” https://www.forbes.com/councils/forbesrealestatecouncil/2020/01/06/how-whole-communities-benefit-from-affordable-housing/
United Way Bay Area, “5 Ways Whole Communities Can Benefit From Affordable Housing,” https://uwba.org/blog/5-ways-whole-communities-can-benefit-from-affordable-housing/
