Source, VHFA: A report by the Urban Institute published in April of this year shows new research on how affordable housing units impact property values on nearby residences. Although a common argument used to oppose affordable housing is the fear that it could lower property values, data from this report shows that this is not true. In fact, affordable housing developments can actually raise property values for nearby homes.
The research for this study was done in Alexandria, Virginia, and found that the development of affordable housing units increased property values by 0.09 percent in higher income neighborhoods, and 0.11 percent in lower income neighborhoods. Although this increase is small, it is statistically significant and helps disprove a large misconception about affordable housing, and adds to the substantial body of research suggesting that subsidized housing development tends to have a neutral to positive impact on surrounding neighborhoods.
