Monday, December 21, 2015
Marketplace has the story:
But new research shows that the housing department may have been on to something. A study by Stanford GSB professors Rebecca Diamond and Tim McQuade shows that affordable housing development could be an effective policy to help revitalize and integrate low-income areas, Diamond says.
The two studied affordable housing projects’ impact on the surrounding neighborhoods over a 10-year span, and found that new projects in poorer neighborhoods increased surrounding home prices and reduced crime, while new projects in wealthier neighborhoods drove down home prices and decreased racial diversity.
“Perhaps counterintuitively, if you build in high-minority areas, it will actually attract higher-income homebuyers as well as non-minority homebuyers to the area,” McQuade says. “It can actually achieve to some extent a goal of integration.”