Neighbouring house transaction response to assisted living facilities and nursing homes

Abstract

Senior group housing that offers services signals that its residents have physical and/or cognitive limitations, which may be viewed as a neighbourhood disamenity. Buyers may discount house values near group homes due to negative perception of the residents or the structure. Most senior group home residents come from the surrounding community; therefore, residents of neighbourhoods with a large proportion of older residents may perceive nearby senior housing as desirable. We employ a system of equations to examine the influence of assisted living and nursing homes on single-family house sales prices and time-on-the market. The results indicate that the presence of a senior group home, especially a nursing home, within one-half mile has a significant negative effect on single-family house prices. The effect is most evident in neighbourhoods with few elderly residents. A clustering effect is present in non-distressed sales. The scale of a nearby senior group home contributes to a longer marketing duration, especially for distressed sales.

Publication Title

Housing Studies

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