Building subsidized low-income housing actually lifts property values in a neighborhood, contradicting NIMBY concerns
Building multiple publicly subsidized low-income housing developments in a neighborhood doesn’t lower the value of other homes in the area – and in fact can even increase their worth, according to a new peer-reviewed study I co-authored.
For the study, we looked at 508 developments financed through the federal Low-Income Housing Tax Credit program and built in the Chicago area from 1997 to 2016. We then examined their influence on more than 600,000 nearby residential sales, using data from local property assessments and tax records. We chose Chicago because of its size, well-established neighborhoods, substantial amount of subsidized housing developments, well-documented racial and ethnic segregation, pockets of persistent and concentrated poverty and excellent data coverage. While some readers may have pictures of dilapidated buildings in their minds, the projects we looked at were generally well built and well maintained.Read more
Government-backed affordable housing in Chicago has largely been confined to majority-Black neighborhoods with high concentrations of poverty over the last two decades, a design that has perpetuated the city's long history of segregation.
As the neighborhoods faced rising divestment, gun violence and food deserts, the lack of affordable housing in other parts of the city restricted many people of color from leaving.
But now, using its largest pot of federal housing funding, Chicago wants to chart a corrective path by aggressively pushing for more affordable homes in high-income, well-resourced areas, which housing experts say would unlock previously unavailable opportunities for communities of color.Read more