HomeMy WebLinkAboutExecutive Summary: effect of MF housing on SF Home ValuesExecutive Summary
The Effect of Multifamily Housing on Single Family Home Values
Many studies have been conducted to study the effect of multifamily housing located
near single family neighborhoods. These studies have shown either no impact or even a
slightly positive impact on single family appreciation rates:
o Single family homes in census tracts with a higher percentage of multifamily
homes appreciated more quickly than single family homes located in areas
predominately made up of other single family homes conclusion from
"America's Working Communities and the Impact of Multifamily Housing Harvard
University, 2004
o Large multifamily developments that are well built, top -of- the market rental
communities do not negatively impact the sales price of nearby single family
homes conclusion from "Effects of Mixed Income, Multifamily Rental Housing
Developments on Single Family Housing Values", MIT Center for Real Estate, 2005
o Over the long run, well placed market -rate apartments with attractive design
and landscaping actually increases the overall value of detached houses
nearby conclusion from "Price Effects of Apartments on Nearby Single Family
Detached Residential Homes Virginia Tech University, 2003
o A study of home values between 1997 and 1999 found that the value of single
family houses within 300 feet of an apartment community appreciated 2.9%
versus 2.7% rate for single family homes without apartment properties nearby
"Market Outlook: Confronting the Myths about Apartments with Facts", National
Association of Home Builders, 2001
There are several reasons for the compelling evidence and conclusions that increased
density does not negatively impact nearby property values:
o New developments, including apartment communities, are an indicator that an
area is a dynamic and thriving community with a strong /stable economy
o Multifamily housing increases the pool of potential future homebuyers; if the
apartment residents enjoy the location they are much more likely to buy a
home within that area thus creating more possible buyers for existing
homeowners when they decide to sell their houses
o New housing, particularly in mixed -use developments, make an area more
attractive to both residents and businesses which in turn helps create more
living choices, retail options, and employment bases to help nurture an area's
growth and vitality