The Affordable Housing Pipeline   presented by   Jamboree Housing Corporation

Does affordable housing drive down property values?

Jamboree’s Bonterra affordable family community pool in Brea, CA
Research continuously shows that affordable housing has no negative impact on the price or frequency of sales of neighboring homes. Numerous studies over time from around the country support the general notion that affordable
housing has no negative impact on surrounding property values – especially when it is thoroughly integrated into the neighborhood.

A 10-year housing study by Trulia looked at 20 of the most expensive housing markets in the country, nine of which are in California. The study found that in these high-priced markets, building affordable housing had no effect on surrounding homes. And in one market, homes located near affordable housing experienced an increase in value.

With affordable housing developments often funded by Low Income Housing Tax Credits (LIHTC), a much more in-depth analysis published in the Journal of Housing Economics by a group of researchers throughout the U.S. drew similar conclusions.

Nationwide, there are comparable findings in Nebraska as well as a study in Virginia featured on Bloomberg showing that affordable housing doesn’t cause nearby property values to decline. And, what happens when affordable housing opens in Orange County, CA? Crime goes down and surrounding property values go up, according to a 2022 study on the effects of affordable housing in Orange County conducted by University of California Irvine’s (UCI) Livable Cities Lab (LCL).

Research from The Center for Housing Policy on how affordable housing impacts property values reveals that the type of affordable housing matters less than the quality of the properties’ design, management, and maintenance. That’s possible because affordable housing development in many areas enhances the community by reclaiming run-down or abandoned property. Jamboree has transformed empty, weed-infested land, remnant parcels adjacent to freeway off-ramps, and even converted blighted motels into high quality, vibrant apartment communities that enhance a community’s image.