As affordability challenges rise across Massachusetts, towns like Andover are grappling with how best to provide housing for lower- and moderate-income households — while balancing concerns about how such developments might affect neighboring property values and community dynamics. The good news: research — and Andover’s own experience — suggests that low-income housing does not inevitably depress nearby home values, and can instead foster stability, inclusivity, and long-term community strength.

Below is a deeper look at what happens when affordable housing joins a place like Andover, and why neighboring properties need not fear — when planning, design, and management are done right.

Affordable Housing in Andover — Snapshot of the Local Context

• The town reports that roughly 13 % of Andover’s housing stock is listed on the state’s Subsidized Housing Inventory (SHI).

• Despite that designation, actual units affordable to households at or below 80 % of Area Median Income (AMI) represent a smaller portion — highlighting a persistent affordability gap.

• Recent data indicates that the 2023 average sale price for a home in Andover was about $881,000, far above what many median-income households could comfortably afford.

• Meanwhile, community assessments show that a significant number of lower- and moderate-income households already face housing cost burdens, underscoring local need for affordable housing options.

  All this context helps explain why Andover leaders have supported affordable housing efforts — not just to provide homes to those in need, but also to maintain community balance as demand and prices climb.

What Research Says: Affordable Housing Doesn’t Automatically Harm Property Values

One of the most persistent concerns whenever low-income or subsidized housing is proposed — especially in suburbs or affluent towns — is the assumption it will drag down property values nearby. But multiple studies and expert reviews disagree.

• A nationwide analysis of 3,083 projects using the Low Income Housing Tax Credit (LIHTC) found no consistent negative effect on surrounding home values after those developments were completed. Homes within 2,000 feet of affordable housing appreciated at similar rates as comparable nearby homes farther away.

• In Massachusetts, a landmark study by the MIT Center for Real Estate examined several dense 40B affordable housing developments in suburban towns — including mixed-income rental projects — and found no adverse effects on nearby single-family home values.

• Other analyses show that, in some cases, adding affordable housing stabilizes previously distressed areas — reducing vacancy, eliminating blighted properties, and encouraging infrastructure improvements, which can actually boost nearby property values over time.

The takeaway: affordable housing itself doesn’t inherently lower your home’s value — the effects depend far more on quality, maintenance, and neighborhood context than on income levels of neighboring residents.

What This Means for Andover Neighborhoods & Homeowners

Given both the data and Andover’s housing landscape, here are some realistic conclusions and takeaways for those wondering how low-income housing might affect nearby properties:

1. Well-planned affordable housing can stabilize housing supply — and community stability.

With soaring prices and limited supply for owner-occupied homes in Andover, affordable rental or ownership options help retain workers, teachers, first-responders, and other essential community members. That relative stability often supports consistent property demand — a plus for existing homeowners.

2. Avoiding blight or vacant properties helps everyone.

When subsidized or income-restricted housing replaces vacant lots or rundown buildings, it tends to improve neighborhood upkeep, reduce crime risk, and encourage maintenance — all factors that support home values.

3. Well-managed developments and smart design matter.

As research shows, the difference between neutral or positive impact — versus perceived negative impact — depends heavily on design, upkeep, community integration, and ongoing management.

4. Affordable housing helps maintain diversity and workforce viability.

By offering housing for lower- and moderate-income families, towns like Andover stay accessible to more than just high-income buyers. That socio-economic mix can strengthen local services, schools, and businesses — indirectly supporting property values.

What Towns Should Do — And What Homeowners Should Expect

For affordable housing to benefit both newcomers and long-time residents, certain practices and policies matter. Based on research and Andover’s experience, here’s what helps:

• Blend affordable units among market-rate units (mixed-income developments) rather than clustering them, which minimizes performance or stigma issues.

• Maintain high building standards and professional management — ensure units stay clean, functional, safe, and well-kept.

• Distribute affordable/rental units across multiple neighborhoods — to avoid over-concentration in one area, which can trigger negative perceptions.

• Provide, stabilize, or improve public infrastructure (roads, sidewalks, transit, amenities) alongside housing — rising demand should be matched by public investment.

• Educate and inform residents about data and research showing neutral or positive impacts — dispel stigma based on assumptions.

Affordable Housing Isn’t a Threat to Home Value — It’s a Community Tool

In towns like Andover, where housing costs have soared and demand remains high, low-income housing isn’t just a social service — it’s part of the community’s long-term resilience strategy.

Rather than a drain on property values, well-designed and well-managed affordable housing can help stabilize neighborhoods, sustain workforce diversity, reduce blight, and support the local economy. For homeowners worried about values, the evidence suggests that thoughtful planning and quality execution matter far more than the income level of your neighbors.

Matt Witte strives to be the best realtor in Andover, MA.

Any questions about real estate, reach out to Matt Witte, Andover Realtor, MA