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New Trulia Report “There Doesn’t Go the Neighborhood” Shows that LIHTC Housing has No Impact on Nearby Home Values

A recent study conducted by Trulia showed that in the nation’s 20 least affordable housing markets, low-income housing built during a 10-year span shows no effect on nearby home values.

 

This is big news for affordable housing advocates everywhere, who struggle to promote the benefits of affordable housing development while eliminating the stigma surrounding it.

 

This study specifically looks at housing projects funded through LIHTC and Trulia’s own home value data to look at changes in nearby home values before and after a LIHTC project is completed.

Here are the research highlights:

 

  • In the nation’s 20 least affordable markets, the Trulia analysis of 3,083 LIHTC projects from 1996-2006 found no significant effect on home values located near a LIHTC project, with a few exceptions.

 

  • Among the cities where there was enough data to measure, San Jose, CA was the most aggressive in adding LIHTC units (7.81 per 1,000 people) during the decade. Meanwhile, Oakland (0.52 per 1,000 people) added the fewest units per capita.

 

  • Of the 20 markets examined, Denver was the only metro area where homes located near LIHTC projects registered a positive effect in terms of price per square foot after a project was completed.

 

  • In Boston and Cambridge, MA, however, LIHTC projects had a negative effect on nearby homes in terms of price per square foot, suggesting a region-specific market effect for these two geographically adjacent metros

 

You can read a full breakdown of the analysis here at the source.