Are the negative externalities associated with subsidized housing offset by positive externalities?
Empirical research supports the concern that subsidized apartment complexes can have a negative impact on surrounding property values in some instances. However, it is also clear from existing studies that this price effect is generally small and dissipates quickly with distance. The availability of geographically disbursed affordable housing within a community has also been found to stimulate economic development, encourage higher levels of educational attainment among children in public schools, reduce crime, and address other problems associated with concentrated poverty. These positive externalities must always be considered when evaluating the potential costs and benefits of a subsidized housing.
