Q-I live on a one-acre lot in a rural neighborhood of similar one-acre lots. A high-density, 60-unit development for senior citizens is proposed adjoining my property. What effect will it have on my property value?
A-There are no general rules regarding the effect of senior citizen housing on adjoining property value. If the project is well-designed, low-rise with ample parking and good landscaping, there will be no adverse effect on value. In fact, the project may enhance the value of the entire neighborhood.
The character of the neighbor hood also affects the equation. To be value neutral, proposed housing should be compatible with design and values already present.
Inexpensive housing placed in the middle of luxury homes tends to detract from the character of the neighborhood and property value. The reverse is also true.
In real estate appraisal the concept is referred to as over- or under-improvement. The least expensive home in a neighborhood benefits from being nearby more expensive property. The most expensive home’s value is lessened by association with less valuable property.
The key is compatibility. Properly designed, senior citizen housing in a residential neighborhood will not have an adverse effect on property values.
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Have a question about real estate? You can write to George Karvel in care of the Chicago Tribune’s Your Place section, 435 N. Michigan Ave., Chicago, Ill. 60611. Answers will be provided only through the column.
