Toward More Inclusive Neighbourhoods

Check Out These Resources - continued

Evaluation of Property Value Impacts: Non-Profit Housing Summary Report

Author Ekos Research Associates Inc.
Year of Publication 1989
Subject Area Impacts of non-profit housing on property values
Ontario - Toronto, Ottawa, and North Bay
Format Report - 66 pages plus five appendices
Funding Agency/Source Ontario Ministry of Housing
Primary Objectives The primary objective of the study document is the true impact of non-profit development on property vales. A secondary objective is to examine the perception of neighbours regarding the impact of non-profit housing projects on the quality of the neighbourhood.
Methodology The study involved a comparison of the selling prices of properties surrounding non-profit housing projects with the selling prices of a matched group of houses not having a non-profit housing project. Pre- and post-occupancy sales data were examined and an analysis of variance statistical test was undertaken. The sample of 51 projects was drawn through a random process in three urban centres - Toronto, Ottawa and North Bay. An average of 22.5 dwellings were identified per project within the primary impact area, and an average of 22.3 dwellings in the comparable area.

To examine the perceived impacts, level of acceptance and satisfaction with consultation associated with the development approvals process, the researchers distributed a questionnaire of near neighbours and residents of a control group. A 21 per cent return was achieved.

Key Findings, ConclusionsThe researchers concluded that non-profit housing projects had no overall negative influences on the property values of the neighbouring property.

With respect to the perceived impacts of non-profit housing by neighbours, the research team concluded:

  • people living close to a non-profit project are more likely to have concerns regarding parking, street noise and overall satisfaction than those not living close to a non-profit project;
  • about 60 per cent of respondents perceived the impact on property values to be negative; and
  • about 35 per cent reported that the presence of non-profit housing had been considered to be a negative factor in their decision about purchasing -6 per cent reported this as a positive factor.

Regarding the acceptance of non-profit housing, the authors concluded:
  • people living close to a non-profit project are no more or no less likely to have a higher or lower level of acceptance than people not living in the immediate area of the project;
  • over 73 per cent of renters were willing to accept more non-profit housing in their neighbourhoods, compared with about 23 per cent of homeowners; and
  • homeowners were less likely to be positively influenced by measures taken to increase acceptance (e.g. compatible design, adequacy of parking).
In response to questions regarding the public consultation process, the researchers found:
  • about 60 per cent of the respondents were dissatisfied with the public consultation process - only 15 per cent were satisfied; and
  • although respondents were dissatisfied with the consultation process, only 36 per cent reported that "better information" would increase their level of acceptance.
Applicability for British ColumbiansThe non-profit projects that were the subject of this research were built under the same federal-provincial programs as non-profit housing constructed in British Columbia in the same time period. Because of this, the study should be considered as a very good reference for developers and sponsors of non-market housing in British Columbia faced with neighbourhood concerns regarding property values.
Other Comments
The sample size for the property values impact study was quite large as variance analyses were undertaken on 51 projects in three communities. Similarly, the sample for the neighbours surveyed was large, with 1,808 questionnaires distributed in total.

Previous Page | Table of Contents | Next Page