Measuring externalities of Low-Income Housing Tax Credit (LIHTC) projects in property value of neighborhood single-family homes : a case in Austin, Texas
Since the Tax Reform Act of 1986, Low-Income Housing Tax Credit (LIHTC) has been a major source of affordable housing provision for low to middle-income families. Meanwhile, growing concern about potential decrease of property value in neighborhoods has been the main obstacle for most of the affordable housing projects. As a result, LIHTC projects are facing backlash from neighborhoods near the potential affordable housing projects – NIMBYism (Not In My Back Yard). However, during decades, it has been always controversial whether LIHTC is actually affecting neighborhood property value in negative way. This study tests the hypothesis that the LIHTC projects affect negatively on neighborhood single-family home property value in Austin, Texas. Single-family homes within 2000-feet radius from the selected LIHTC projects were analyzed based on the Travis County Appraisal District annual appraisal values between 1993 and 2008.