There is an overwhelming volume of evidence that homes for people with disabilities do not significantly impact property values.
In a review of 47 studies from 1973—1993, researchers found that property values remain unaffected by homes for people with disabilities. The studies also revealed that group homes do not make properties close to the homes harder to sell.1
For example: Julian Wolpert, Princeton University, studied the impact of group homes for people with mental retardation in ten NY State communities and compared the findings with 42 other communities without group homes. Wolpert found that there was no significant difference in property values and no decline in the value of adjacent properties in the study area.2
Another study of property market activity around 12 Philadelphia mental health facilities also concluded that no decline in sales prices occurred due to the presence of community homes.3
The Community Services Information Program reviewed a total of 58 studies, spanning nearly two decades, from 1970-1989. The research reviewed consistently demonstrated that group homes have not negatively impacted property values or property turnover rates.4
Among these studies, S. Breslow, Princeton University, reviewed the impact of 16 community residences for the developmentally disabled, mentally ill, veterans, neglected children and the elderly on the real estate market in White Plains, NY. He found that the homes did not depress property values and, in some cases, caused appreciation of property values.5 (Believed to be the result of renovations to the homes.)
In Stamford Connecticut, property values in eight neighborhoods with group homes were compared to 23 neighborhoods without group homes. The group homes housed chronically mentally ill and mentally retarded adults, homeless families, adolescent males and recovering alcoholics. The researchers concluded that the data provided strong evidence that group homes have no effect on property values.6
1Michael Dear, Robert Wilton (1996) "The Question of Property Values," Campaign for New Community, Interfaith Conference of Metropolitan Washington, 1419 V Street NW, Washington, DC 20009. 2Wolpert, Julian (1978) "Group Homes for the Mentally Retarded: An Investigation of Neighborhood Property Impacts," prepared for NY Office of Mental Retardation and Developmental Disabilities; Princeton University.3Dear, Michael (1977) "Impact Of Mental Health Facilities On Property Values" Community Mental Health Journal, 13:150-157.4Community Services Information Program (1990) There Goes the Neighborhood. White Plains, NY.5Breslow, S. (1976) "The Effect of Siting Group Homes on Surrounding Environs." Princeton University.6Coleman, A. (1989). "The Effect of Group Homes on Residential Property Values in Stamford, Connecticut." Stamford Connecticut. St. Lukes Community Services.