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The Impact of Supportive Housing on Surrounding Neighborhoods

15 Pages Posted: 6 Jul 2007  

Vicki Been

New York University School of Law

Ingrid Gould Ellen

New York University (NYU) - Robert F. Wagner Graduate School of Public Service

Michael Gedal

New York University - Robert F. Wagner Graduate School of Public Service

Ioan Voicu

Office of the Comptroller of the Currency (OCC)

Date Written: July 2007

Abstract

Communities across New York City and around the nation commonly oppose proposals to open supportive housing in their neighborhoods because of fear that the housing will decrease the quality of life in the neighborhood, and lead to reductions in property values. This study aims to give supportive housing providers and local government officials the objective, credible information they need to guide policy decisions and to respond to opponents' fears and arguments. Using a difference-in-difference regression model to isolate the effect of supportive housing from more general macro and micro market trends and neighborhood variations, this paper examines the impact that almost 14,000 units of supportive housing created in New York City over the past twenty five years have had on their host neighborhoods over time.

In a preliminary analysis, we find little evidence that supportive housing facilities diminish the value of surrounding properties. We find evidence that prices of properties surrounding supportive housing facilities are lower than comparable properties in the same neighborhood prior to the opening of the facility, and that this gap tends to narrow following the opening of a facility. Specifically, the preliminary analysis suggests that modestly-sized supportive housing developments (which are typical in New York City) may have small, positive impacts on neighboring property values, though these positive impacts decline as project size increases. Very large facilities may have negative impacts on the surrounding neighborhood.

Keywords: Supportive housing, neighborhoods

JEL Classification: R52

Suggested Citation

Been, Vicki and Ellen, Ingrid Gould and Gedal, Michael and Voicu, Ioan, The Impact of Supportive Housing on Surrounding Neighborhoods (July 2007). 2nd Annual Conference on Empirical Legal Studies Paper. Available at SSRN: https://ssrn.com/abstract=998722 or http://dx.doi.org/10.2139/ssrn.998722

Vicki Been (Contact Author)

New York University School of Law ( email )

40 Washington Square South
New York, NY 10012-1099
United States
212-998-6223 (Phone)
212-995-4341 (Fax)

Ingrid Gould Ellen

New York University (NYU) - Robert F. Wagner Graduate School of Public Service ( email )

The Puck Building
295 Lafayette Street, Second Floor
New York, NY 10012
United States

Michael Gedal

New York University - Robert F. Wagner Graduate School of Public Service ( email )

New York, NY 10012
United States

Ioan Voicu

Office of the Comptroller of the Currency (OCC) ( email )

400 7th Street SW
Washington, DC 20219
United States

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