Assessing the Impact of Permanent Supportive Housing on Property Values in Richmond, Virginia

The combination of affordable housing and supportive services in permanent supportive housing is a proven housing intervention effective in providing housing stability for people who have long been homeless, unstable, or socially marginalized. Virginia Supportive Housing provides crucial resources in addressing the root causes of homelessness in the region.In many cases, opposition to permanent supportive housing is based on concerns that property values will decline. As a response to these concerns, this study will provide insight into the extent to which property values are affected. This study aims to change the perception of permanent supportive housing to foster community support in the development of future housing projects. To do so, this research will analyze the property values surrounding two housing units owned by Virginia Supportive Housing in the greater Richmond area; New Clay House, and Studios at South Richmond.This study utilizes the multiple regression analysis of the hedonic price model to determine the effect of the distance to permanent supportive housing on property values for the New Clay House and Studios at the South Richmond study areas.The multiple regression model assumes that the sales value is a function of the distance from the PSH unit, neighborhood amenities, and property-specific characteristics. Property characteristics for sale properties (property control variables) include lot size (square footage), and age of the building. Neighborhood amenity variables (also control variables) include the distance from grocery stores, distance from school (K-12), and distance from community areas. This study defines a grocery store as a market that sells produce. Community areas include any green space, park, or community center in proximity to the area. Amenities within 1,000 feet of the study area (census tract) are included in this study.