Low-Income Housing Doesn’t Impact on Surrounding Property Values
It is a common well believed myth that when low-income housing is built, surrounding property values suffer.
According to the analysis, which examined over 3,000 Housing Credit developments in the nation’s 20 least affordable housing markets between 1996 and 2006:
- Housing Credit developments had no significant impact on nearby home values, with the exception of the Denver metro area,
- where Housing Credit developments had a positive effect on nearby homes in terms of price per square foot.
- The analysis focused on a time period before the housing bubble.
Newark, New Jersey was one of the 20 housing markets that were part of the analysis and 190 developments were analyzed in Newark. Only 32% of the housing stock in Newark is by definition affordable.
Trulia defined low-income housing as projects funded through the Low Income Housing Tax Credit which is administered by the NJ Housing Mortgage Finance Agency.
The ACTION Network, of which Monarch is a member, is a national coalition of over 1,300 organizations and businesses calling on Congress to address our nation’s severe shortage of affordable rental housing by expanding the Low-Income Housing Tax Credit.
ACTION is working to get the new Trump administration and Congress to support the Housing Credit.
This new analysis that tax credit properties do not impact the property values of surrounding properties bolsters the work to protect the Housing Credit from potential threats.
With undivided Republican control in Washington, the likelihood of the next Administration and Congress advancing legislation that could impact the Housing Credit has increased substantially.
Specifically, Congressional Leaders and President-elect Trump have all said that tax reform will be a priority for them in 2017. Many members of Congress and the President-elect have also stated support for infrastructure legislation, which may move on its own or as part of tax reform.
These present the potential for threats to the Housing Credit and Housing Bonds as well as the chance to advance ACTION’s Housing Credit priorities.