One of the primary goals of the Canadian Real Estate Association (CREA), and therefore the REALTORS® Association of Edmonton (RAE), is the protection of property rights. Protecting property owners is one of the five principles of the national Quality of Life Program. The other four include ensuring economic vitality, providing housing opportunities, preserving our environment and building better communities.
REALTORS® Associations do not typically go to the front line when housing based protests erupt. We tend to take a measured and evidence-based approach that informs both the proponents and objectors in a specific issue. Locally, we provide information about housing prices and trends from the national right down to the neighbourhood level. We hold an annual Housing Forecast Seminar to help REALTORS® and investors to understand the local and wider market. RAE supports social and affordable housing organization like Homeward Trust and National Housing Day to raise awareness for local housing issues and the REALTORS® Community Foundation has provided grants to housing related organizations for over 25 years.
Inevitably, when an affordable or social housing project is proposed, we get calls from local homeowners asking for information that will support their fear that their individual property values will be negatively affected by the proposed development. They also call when there are proposals for powerlines, casinos, prisons, roadway realignments and any number of other changes in their neighbourhood. In each case we have made the statement that:
The value of a particular property is dependent on a wide variety of factors but there is no evidence that the presence of social/affordable housing or other institutions has a disproportionate negative impact on the value of nearby property. – REALTORS® Association of Edmonton.
Each home sale is a unique situation and there are so many variables that affect the final negotiated price of a home that it is impossible to identify if any one element has a universal impact on prices in the neighbourhood. It is more likely that the color of the kitchen or the condition of the backyard will result in a negotiated price reduction than proximity to a social housing or similar facility. There are numerous studies across North America to back up the assertion that social or affordable housing does not cause a decrease in property values. For example, a review and analysis of 21 recent studies measuring the impact of various forms of affordable housing on property values can be found at http://stardust.asu.edu/docs/stardust/housing-research-synthesis/research-brief.pdf. One of their conclusions was that:
Affordable housing seems least likely to generate negative property value impacts when it is embedded within higher-value, low-poverty, stable neighborhoods and when the affordable housing development is well managed.
There are more studies and reports located at http://www.realtor.org/field-guides/field-guide-to-effects-of-low-income-housing-on-property-values.
It may be a shock to a homeowner to find that there will be a change to their neighbourhood. They may fear that it will impact their lifestyle and lower property values. In reality, the change often turns out to negligible or has a positive impact on the life of the community and property values.