A recent study by the American Enterprise Institute found that building light-touch density housing does not appear to affect single-family home values. This study was conducted in Charlotte and Seattle.
These cities were chosen because of the legality of light-touch density infill, as well as the growth of these cities in the past 25 years, making them ideal cities to study.
Light-touch density infill is the ability to build multiple units, a series of townhomes, or an accessory dwelling unit (ADU) on a parcel of land.
Supporters argue that infilling creates less expensive units due to their typical size. It also allows for more use of a piece of land, therefore lowering the overall rental rate. Opponents suggest that infilling will lower the value of homes in the surrounding area and affect the culture and aesthetic of the community.
Researchers compared property values in zones where only single-family detached homes were allowed and in zones where light-touch density infill was taking place. They studied home price appreciation in these two areas from the time the zoning regulations were implemented in their respective cities.
It was found in the Seattle portion of the study that differences in home price appreciation were not notable between the two zones until 2020. The researchers suspect this is due to the Covid-19 pandemic shifting consumers preferences toward larger homes due to more jobs being done from home.
In Charlotte, researchers also found no notable difference in home price appreciation between zones for only single-family detached homes and light-touch density infill zones. In fact, in the aftermath of the 2008 Financial Crisis and Covid-19, light-touch density areas actually performed a little better than single-family detached homes only areas.
Other studies indicate similar findings, with some noting reduced rent rates within neighborhoods incorporating light-touch density housing.
“I’ve seen that adding ADUs or duplexes doesn’t hurt home values — in fact, neighborhoods with more walkable options often become even more sought after. Sure, people worry about parking or change, but the market rarely reflects those fears,” long-time real estate broker, Debra Mangum, told CJ.
Mangum continued by saying, “Opposition can stem more from perception and less from actual market trends. At the end of the day, it really comes down to personal preference — some folks want wide open yards; others want to walk out their front door and grab coffee without getting in the car. Gentle density gives us the flexibility to have both.”
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Author: Lydia Stewart
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