According to industry research, the sales price of properties within a neighborhood would go down automatically once the neighborhood has a shelter within 500 feet and at least one other shelter within 1,000 feet, which is around four blocks.
Note that this is one of the primary reasons why proposals to build and operate a homeless shelter tend to encounter opposition from community members because they are worried about how the development will negatively impact property values.
In recent times, this has created a barrier for individuals or organizations looking to build or expand supportive housing across the nation.
Ways Homeless Shelters Affect Property Values in the Neighborhood
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Location Matters
One thing you need to understand is that the location of a homeless shelter can in various ways affect property values. Keep in mind that homeless shelters that are located in close proximity to residential areas will most definitely be seen in a different light especially when compared to those located in more commercial or industrial zones.
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Community Perception
You need to understand that how the public views homeless shelters would indeed influence property values. Keep in mind that a shelter that is well-managed and integrated into the community with minimal disruption will have little impact on property values. Howbeit, the negative way people view or misconstrue shelters will lead to a decrease in property values.
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Crime and Safety Concerns
All over the globe, there is this school of thought that believes that the presence of homeless shelters can lead to increased crime rates within the neighborhood, negatively influencing the safety and security of residents.
Truth be told, there are justifications or facts to back up this assertion. Owing to that, note that increased crime rates, real or perceived, will indeed negatively impact property values within the neighborhood.
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Local Government Policies
States and cities in the United States vary in their regulations and how they group and categorize buildings and neighborhoods.
Owing to that, you need to understand that the position of local government and zoning regulations when it comes to homeless shelters will also dictate their impact on property values.
Locations with very strict regulations or proactive measures to deal with certain issues and concerns might limit the possible negative effects.
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Community Services and Support
In addition to the negative impacts of these shelters on property values, note that they could bring some positives to their neighborhood.
For instance, homeless shelters that are renowned for always engaging with the community, making available the right support services, and working in alignment with local organizations, will indeed contribute positively to the neighborhood.
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Economic Factors
Keep in mind that the economic status of the neighborhood as well as the broader community could dictate the ways homeless shelters affect property values.
To put it plainly, areas that are thriving economically will have the resources to mitigate the impact of homeless shelters on property values, while in struggling communities, the effects could be more pronounced.
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Affordable Housing Initiatives
In the United States, there are experts who believe that homeless shelters can have a positive impact on their neighborhood in the sense that they contribute to the development of the neighborhood.
You will agree that some of these initiatives could work in favor of the general public especially since they enhance community cohesion and benefit property values over the long term.