Study: Subsidized Housing Not So Negative

Federally subsidized housing has a significantly smaller adverse effect on neighboring property values than commonly believed, according to a study sponsored by the NAR's new Housing Opportunity program.Using new methodology to judge the impact of housing for low-income residents, the study by George Galster of Wayne State University in Detroit found that various forms of assisted housing have had insignificant effects on the value of surrounding properties. In some cases, it has even had a positive effect on values. Moreover, in places where prices fell, the decline was related more to the size and scale of the subsidized project than to the fact that its residents received assistance to pay their rents. Dr. Galster faulted previous studies on the topic, saying they suffer from serious shortcomings that render them of questionable value. However, he said his methodology must be replicated in more research before drawing definite conclusions.