How does affordable housing affect property values

[Jeffrey Townsend]

I purchased a multifamily property downtown Charleston Sc. They just announced a new plan to bring affordable housing and improve flood/drainage issues in the surrounding area. Would this negatively or positively affect property values? My thoughts are bringing low income to the area would bring down surrounding property values.....

[Nathan Gesner]

It's a crap-shoot, in my opinion. Many communities around the country are adding new income-based housing complexes. Even in my small town of 9,500 people we have seen about 50 units added in the past five years and more are planned. I think they improve the community for a while because they are nice, new properties with fresh landscaping. Demand is high so they get pretty good renters and things seem to be going splendidly.

However, take a look at any affordable housing complex over the long run and you'll see a different story. I have six pretty large complexes in my community that have been around for 20 - 40 years and they are all slightly neglected and well known for domestic violence, drug use and dealing, etc.

For the short-term, it's probably good. After 10 - 15 years, I would probably look at getting out while I'm ahead.