Home Buying in Norman>Question Details

threeskool, Home Buyer in Norman, OK

Do home values decline near a proposed apartment complex?

Asked by threeskool, Norman, OK Tue Sep 17, 2013

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9
In general, yes. At least that's the case in my market (Ohio). Apartments, whether proposed or existing, almost always have a negative value on existing single-family homes.
1 vote Thank Flag Link Thu Oct 3, 2013
All of the research I've seen over the years indicate that home values do not necessarily decline when a new apartment complex comes into the neighborhood. This is especially true at first, when the complex is brand new and shiny. You would be hard pressed to find any major differences in neighborhood home values after 5 years or so when comparing values to other comparable neighborhoods located nearby. In my opinion, the homes located nearest to the complex could be negatively affected due to the view and noise. Increased and late night traffic may also be a negative that turns potential home buyers off and could impact values of these homes.
1 vote Thank Flag Link Wed Sep 18, 2013
The proposed units(48) are located near a university and are going to be built 40 ft. from my backyard property line.The apartments will be two story, one bedroom units. I fear this is going to affect the property values of all the homes in the immediate area , as they are located in a restricted , upscale neighborhood. Are my fears misplaced?
1 vote Thank Flag Link Tue Sep 17, 2013
I think your concerns are legitimate. In most cases our homes are our most valuable asset. We've worked hard to achieve that asset and want to protect it. Will the complex cater to college students? Will the noise from these apartments be a factor? If there is still time, you and your neighbors may want to address your concerns to your city council.
Flag Tue Sep 17, 2013
Hi Threeskool,

As others have said before me, this is a tough one to answer. Many factors come into play such as the number of units to be built, will there be ample parking or will the tenants rely on street parking, and how will it impact the local schools, traffic and businesses?

Recently, I had a buyer who refused to buy a home close to apartment complexes as he associated it with an increased risk of crime. While I don't know if there is data to support his position, there may be other buyers who share his sentiments.

I would suggest obtaining more information on the proposed development to see how it may impact you and take it from there.

Best of luck to you!

Barbara Grandolfo
1 vote Thank Flag Link Tue Sep 17, 2013
That is a great question and a difficult one to answer. There are many factors at play here that could affect the answer to your question. Is this going to be a high end apartment or affordable housing? How is the land right around it zoned? Is it a high traffic area already or is there plenty of room to grow. All of these things factor in. I would say that the need for more housing is a good thing. It may also raise the demand for more commerce in the immediate area which is a good thing for property values.

I am sorry to be so vague but there really is no way to know for sure without knowing more details. Feel free to call me if you would like to discuss further. I am happy to go into more detail with you.
1 vote Thank Flag Link Tue Sep 17, 2013
There is no way to answer that but to say they might or might not. Just being near an apartment complex does not have to be an influence one way or the other. And since it is proposed it is even more difficult to say.
1 vote Thank Flag Link Tue Sep 17, 2013
Thanked
Flag Tue Sep 17, 2013
What is the distance, what type of complex, what type of home, etc, etc.
0 votes Thank Flag Link Tue Dec 3, 2013
Depends on the apartment complex, some complexes can increase surrounding values.
0 votes Thank Flag Link Tue Dec 3, 2013
probably, unless they are luxury type apartments. It's always hard to sell a home if an apartment complex overlooks the backyard of a home
0 votes Thank Flag Link Mon Dec 2, 2013
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