Balancing Growth and Character

Will affordable housing affect your home value?

 The answer isn’t one-size-fits-all. From Budd Lake to Chester, towns are navigating change in different ways—and outcomes vary. Daniel Pennisi from RE/MAX Heritage Properties gives his take

Will Affordable Housing Affect My Home Value?

According to Daniel Pennisi of RE/MAX Heritage Properties, “Studies across the U.S. show mixed results.” For example, a 2016 initiative in Alexandria, Virginia saw nearby home values rise after small-scale affordable housing replaced neglected lots. A 2014 Denver study found similar outcomes in lower-income areas, with modest gains or no change in middle-income neighborhoods.

But not all cases are positive. In a 2013 study by the Federal Reserve Bank of Cleveland, economist Daniel Hartley found that subsidized housing developments in higher-income neighborhoods were associated with a small decline in nearby home values—typically 1–2%, particularly when new developments introduced a noticeable shift in density or character. “In that case, the decline was mostly about density, traffic, and neighborhood character,” Daniel posited. It’s a reminder that context matters, and the same project can have different outcomes depending on where it’s built.

Towns Take Varied Approaches.

In Mount Olive, seven single-family affordable homes are being added in Budd Lake through a Habitat for Humanity partnership. Officials say the project is modest in scale and designed to resemble existing homes. With recent home prices near $600,000, the market has remained stable.

Mendham Borough is using overlay zoning to meet state mandates while minimizing large-scale change. One site under consideration is the former Daytop property. Residents have voiced concerns about density and traffic, and officials have emphasized a deliberate, measured process.

In Chester, plans to redevelop the former Larison’s Turkey Farm include affordable units, market-rate townhomes, and commercial use. Officials have described the project as an attempt to blend growth with Chester’s rural character. A farmstand and Chick-fil-A have been floated as part of the plan.

Long Valley (Washington Township) is evaluating a 125-home proposal along Kings Highway, with 25 homes designated as affordable. Officials say the plan offers more control than alternatives that could be imposed by the courts. Public feedback has focused on traffic, schools, and whether the project aligns with the town’s scale.

Roxbury’s affordable housing efforts have centered on modest, mixed-income developments like The Willows and designated units at Woodmont Parc. These projects add low- and moderate-income options without large-scale disruption. Township officials have pushed back on high state housing quotas, citing infrastructure limits and land constraints. Instead, Roxbury has favored gradual integration of affordable units through redevelopment and targeted infill.

So what does it mean, especially if you are considering a home sale? Daniel’s take: “You can make yourself sick worrying about things like this that may be years off and might have no effect whatsoever. My advice is to be involved and informed, but ultimately you need to focus on what you can control: maintaining your home and positioning it to appeal to the most buyers...because that is all that will matter when people come to the door. Regardless of what’s going on on paper, thats all that matters.”