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Caren Miller, Other/Just Looking in Yorba Linda, CA

Does property value go down if low incoming housing is built in the same neighborhood?

Asked by Caren Miller, Yorba Linda, CA Sat Oct 27, 2007

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Many homeowners fear low-income housing will decrease their values. However, ask some key questions: 1) what are the income requirements? 2) Is is for owners or renters? 3) what are the CCR's?

For example, in Los Gatos (a high income area, with avg of $120K+/annual income at the time 15 years ago), the first low income rental housing had a requirement that renters' income ranged between 40-60% of that city's average (~$50-70K)-not exactly poverty level. Within the first 3 years, about 8 families had managed to save enough money to move out and purchase homes on their own (the goal of the program).

In that area, values continued to rise at normal to high levels, contrary to existing homeowner expectations.
3 votes Thank Flag Link Sat Oct 27, 2007
absolutely, yorba linda already has enough low income housing. we need to keep it the land of gracious living

mryl
1 vote Thank Flag Link Sun Jan 25, 2009
Are they low income condos /apartments? These are rental units?
1 vote Thank Flag Link Sat Oct 27, 2007
Cindi Hagley…, Real Estate Pro in San Ramon, CA
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Hi Caren. What are the income qualifications for the new project. I don't know if there are any low income housing projects anymore in CA. I think there may be affordable housing projects, but in my opinion most true low income buyers will not qualify for them.

I general, you can expect that the addition of an affordable income housing project to a neighborhood will slow down appreciation in that area. Since the homes have to be most likely owner occupied, at least you don't have to deal with the more frequent turnover that you usually see in predominantly tenant occupied areas.
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1 vote Thank Flag Link Sat Oct 27, 2007
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
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Of course it does. You will compee price per square footage with the low income homes. Steer cear of these areas. You can..........
1 vote Thank Flag Link Sat Oct 27, 2007
Hello Caren:
Overall, it makes properties less attractive to buy; which may mean property onwers near the low income housing may be inclined to lower their price just to get the property sold. Despite the fact that appraiser's don't consider them as equal comparables, the property value may go down a bit and your property value may not increase as high as others away from low income housing.
Victoria Always,REALTOR
0 votes Thank Flag Link Tue Jan 5, 2010
Is it on the same street? Same sub division ? What is size of city? all are factors determine if property values go down.

Each city has to offer housing for all income levels Equal Housing Opportunity.


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0 votes Thank Flag Link Mon Jan 4, 2010
Hi Caren,

Valuman is exactly right as far as appraisals are concerned. In addition to low income housing many cities also have moderate income housing. Appraisers recognize these homes as not comparables to non-income restricted homes.

There are some projects where a specific percentage of the home in that complex must be designated as low or moderate income, and that does tend to limit the value growth of other homes in that complex. Because they have a limit on how much value gain they can have over the years.Tough to sell your home for $50,000 for the exact same home next door.

I think you are asking about neighborhood prices in general. The fact is that all cities are now required to provide for low income housing so it's not something that's is particular to just one city or neighborhood. I live in Mission Viejo and we have new developments going in as a "mixed use" neighborhood....and it looks really nice on paper. I don't see this causing any decrease in home prices around it.....but your area might be different.

There certainly is that fear.....that it will cause a decrease in existing home values....so perception becomes reality.

Karen
0 votes Thank Flag Link Mon Jan 4, 2010
First of all low income housing would not be considered as a comparable to your home. You would be comparing apples to oranges. You could not qualify for a low income home either.
0 votes Thank Flag Link Sun Jan 3, 2010
First of all low income housing would not be considered as a comparable to your home. You would be comparing apples to oranges. You could not qualify for a low income home either.
0 votes Thank Flag Link Sun Jan 3, 2010
So, what is the new Habitat for Humanity project on Yorba Linda Blvd., near Mimi's Cafe? How large is it? A quick scan of their website isn't particularly forthcoming with information.
0 votes Thank Flag Link Fri Jan 1, 2010
Unfortunately Yorba Linda is being forced to put in some higher-density low-income housing projects. Many places have been suggested for these (there will be multiple developments) because no one wants them near their homes. There in lies the answer. If you don't want them near you, then it's not seen as a positive thing be other as well. This negative feeling drives down prices of existing homes around the area where they are build. How much does it drive them down? We don't know.

Many have suggested putting these housing units in Savi Ranch where nobody lives so that it doesn't affect any home owners.

We'll all have to wait and see where they put them.
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0 votes Thank Flag Link Wed Jul 29, 2009
Mike is right on this. YL has had some low income projects that went sour. One in Kellogg Terrace Townhomes
Low income people got 50% off with the proviso their unit stayed in the category.. less appreciation so when they sold other low income would be able to afford the home. Well, they sued. New owners did not want to lose the "equity" others enjoyed. Liberal courts said OK. Forgetaboutit. These give away deals always fail the free market test. Want another? Homes built for low income on YL Blvd, near Albertsons during the Brown administration.. builder got perks for the beach projects in exchange for low quality income tract.. built on metal jacks.. Trailers to anyone in the know. Attractive for the low income HO.. but now considered a trailer park. Lots of foreclosures next to expensive type homes. Would be more expensive sans this blight. More of this in YL, but you get the drift. Low income homes abound in near by cities.. just look at any Liberty St. listing
Short sales.. hey many available but low income refuse them. We have enough to go around now
0 votes Thank Flag Link Wed Jul 29, 2009
It is sad to say low income housing does not help improve values in the area. The property itself will become less desireable.
0 votes Thank Flag Link Sat Oct 27, 2007
Pam Winterba…, Real Estate Pro in San Ramon, CA
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