What Is Low-Income Housing? - Home & Texture
Living Room Low-Income Housing

Does Low-Income Housing Decrease Nearby Property Value?

Is your home really only as valuable as your neighborhood?

May 27, 2024 at 1:54 AM PST
Living Room Low-Income Housing

Does Low-Income Housing Decrease Nearby Property Value?

Is your home really only as valuable as your neighborhood?

May 27, 2024 at 1:54 AM PST

If you’re a homeowner, you likely know the impact that living in a nice neighborhood can have on your property value. A safe and cared for neighborhood can make your home more desirable to potential buyers in the future. But on the other hand, have you ever wondered if low-income housing can influence the property values in your neighborhood?

Understanding Low Income Housing

Before we do a deep dive into low-income housing, let’s break down what it actually is. Basically, low-income housing is affordable housing specially designated for people who are struggling financially. These homes are typically subsidized by the government or nonprofit organizations so that everyone has a place to call home.

But even though low-income housing is helpful to many people, it can be a cause for concern for other homeowners. One of the biggest worries people have about low-income housing is that it could bring down property values in the neighborhood.

Nobody wants to see the value of their home take a nosedive. It’s a valid concern, especially if you’re a homeowner looking to protect your investment. But is there even any truth to this fear, or is it just one big (really common) misconception?

A nice neighborhood
Photo credit: Priscilla Serneo via Unsplash

Does Low-Income Housing Decrease Nearby Property Value? What You Should Know

For the most part, whether low-income housing reduces property value is not yet known. There are studies that reveal that low-income housing can potentially have a modest negative impact on property values, however many others have found it to be no big deal. But why?

Basically, there are a lot of factors that come into play when it comes to the impact of low-income housing on property values. Everything from the quality of the housing development to the overall economic health of the neighborhood can be a deciding factor in the value of neighborhood properties. Take a look at the top four:


A super important factor to account for is the quality of the low-income housing development itself. Cared for properties that are integrated into the community are more likely to bump up property values, while neglected or poorly managed developments tend to bring them down.

If you plan to sell your home in the future, keeping your home and neighborhood neat and tidy is your best bet to upping your home valuation.

Economic Health

Next up, the economic health of the neighborhood. In places that have a strong job market, the impact of low-income housing on property values isn’t going to be too big a deal . Think of it like a kind of balancing act; if the area is stable economically, low-income housing is unlikely to have much of an impact.


Another big factor that plays a role in how low-income housing can influence your property value is the involvement of the community. Signs of a healthy, active community include:

  • Active community participation in local events
  • Multiple safe and cared for public spaces — i.e. parks, playgrounds, and recreational areas
  • A strong community identity
  • Accessible and affordable healthcare services
  • Low crime rates
  • Diverse and inclusive community organizations and initiatives
  • Reliable public transportation

When people take pride in their neighborhood, the impact of low-income housing on property values is minimal. But on the other hand, a lack of community involvement could signal that the neighborhood is not a desirable place to live, bringing down property values.


Even if you don’t have a problem with low-income housing, many people do. And when those people are potential home buyers, your home valuation can take a serious hit.

To avoid a bad valuation, the best thing to do is to get involved and advocate for your community. You can attend local town hall meetings, join community organizations, or participate in neighborhood clean-up initiatives. This is a more productive way to show that you care about your community, regardless of its economic makeup.

An aerial view of a neighborhood
Photo credit: David McBee via Pexels

At the end of the day…

Low-income housing is a big help to many people in need. And making sure that everyone can have safe and affordable housing should be a top priority for everyone, no matter where they live.

Rather than think solely on property values, try to concentrate on creating happy, healthy, and inclusive neighborhood that attracts potential buyers.



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