The Impact of Supportive Housing on Surrounding Neighborhoods: Evidence from New York City
We wanted to pass along the findings from NYU Furman Center on the impact of supportive housing development on neighboring property values. The study examined 123 residences developed in New York City between 1985 and 2003 and attempted to isolate the impact of development on the rate of property value growth. The report found that properties up to two blocks away INCREASED slightly (3-4%) over the norm.
Key findings include:
- Over the first five years following construction, the values of properties within two blocks of a supportive housing building rose three to four per cent faster than comparable properties not located near supportive housing.
- The majority of buildings in the sample were located in the higher-density boroughs of Manhattan (49%), the Bronx (25%) and Brooklyn (23%). However, neighborhood density did not affect the relationship between residences and property values, indicating that housing developments have the same benign effect in more sparsely populated neighborhoods.
- While buildings studied range from less than 10 tenants to more than 400, the study found no link between a residence's size and its effect on nearby property values. This finding runs counter to the common perception that larger residences are more likely to affect real estate values nearby.
Click here for the full pdf article.
Source: NYU Furman Center