Affordable Rental Housing Does not Reduce Property Values: Evidence from the Twin Cities
A common misunderstanding about affordable housing is that subsidized rental housing causes a decline in the value of the nearby owner-occupied properties in the neighborhood.
In 2000, Family Housing Fund commissioned Maxfield Research, Inc. to research the connection between affordable rental housing and property values in order to help policymakers, housing developers, and other interested parties understand the impact of affordable housing on communities. An update on the report was commissioned in 2014.
In both 2000 and 2014, this research found little to no evidence to suggest that the construction of affordable rental housing hurt the performance of home sales. In the areas studied, home sales displayed similar or stronger performance in the period after affordable rental housing was built compared to a control group. As the Twin Cities region’s housing gap widens, it is important that policies and practices are rooted in fact.
What are the main takeaways? Read the two-page summary.