Raleigh Regional Association of REALTORS® Releases a Study on the Influence of Affordable Housing on Surrounding Property Prices

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Raleigh Regional Association of REALTORS® released a commissioned study analyzing property prices and other key real estate metrics in subdivisions where affordable housing was present compared to subdivisions without affordable housing.

“The results are encouraging because the community is aware of the necessity of affordable housing," said study's author Stacey Peter Anfindsen.

The Raleigh Regional Association of REALTORS® released a commissioned study as the discussion surrounding affordable housing continues to grow within our community.

With the need to inject empirical data into the affordable housing discussion, key residential metrics between a study and control group were developed and analyzed by local residential market analyst and appraiser Stacey Anfindsen. Conclusions were made based upon analysis of these metrics.

The study identified Habitat for Humanity of Wake County built homes as a representative sample of affordable housing. The lack of cluster of Habitat Wake built housing in many parts of the county produced a study group geographically located in southeast Wake County. Four subdivisions in this area of the county with a significant percentage of Habitat Wake built housing were identified. These subdivisions made up the study group. The control group was defined as subdivisions within the encompassing 27610 zip code that did not contain Habitat Wake built housing.

Notable findings include:

  • Metrics analyzed did not consistently favor either group.
  • Study subdivisions containing a sizeable number of previously built Habitat Wake homes continue to draw for-profit builders.

The author of the study notes that each group had an equal number of metrics superior to the other group. Therefore, his opinion is the presence of affordable housing within a subdivision has no significant influence
on pricing metrics.

“I was pleased to have the opportunity to research empirical data and apply it to the affordable housing discussion. The current narrative is that the presence of affordable housing has a negative influence on key house price metrics,” said Anfindsen. “The results are encouraging because the community is aware of the necessity of affordable housing.”

Chief Executive Officer of the Raleigh Regional Association of REALTORS® Tessa Hultz said of the study’s impact on the region, “As Wake County communities look to house an increasing number of neighbors, it is important that we separate fact from fiction regarding housing issues and focus on real solutions.”

The full report can be found on the homepage of the Raleigh Regional Association of REALTORS® at http://www.RRAR.com.

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