The construction of shelters and supportive housing doesn't have a negative impact on surrounding land values, according to the summary of a new BC Housing study.
The report looked at more than a dozen facilities across the province and found that median assessed property values in the areas around the sites tracked consistently with the municipal average.
Of the 13 facilities examined, two areas saw decreases in land values while, in four areas, values grew faster than the average while the rest mirrored the city-wide trend.
"This suggests the introduction of non-market housing, such as supportive or affordable rental housing, does not affect residential property values," the report stated.
The study's findings dispel a notion BC Housing said is often put forward when such projects are introduced that non-market housing projects will hurt real estate prices.
For example, in the 200-metre radius surrounding 3030 Gordon, there are 39 properties that increased in median value an average of 40% between 2015 and ’18, while the 361 properties within a 500-m radius rose 41%. The increases are consistent with the 44% rise in property values seen across Coquitlam during the three-year period, the report stated.
Other cases showed the property values surrounding non-market housing facilities increased at a faster rate than the municipal average.
Residents within 200 m of Alouette Heights in Maple Ridge, for example, saw their median assessments rise 84% between 2012 and ’17, during a period when the municipality saw a 72% average increase.
In total, the study examined 1,687 properties in the 200 m and 9,586 properties in the 500 m surrounding the 13 case studies. Facilities were examined in the Lower Mainland as well as Victoria, Prince George, Vernon, Terrace and Cranbrook.
- Gary McKenna, Tri-City News