Homeless shelters drop Manhattan property values by up to 17%: study

The city’s homelessness crisis has a new cost — home values.

Manhattan houses located near shelters lost as much as 17 percent of their value, according to a study released by the city’s Independent Budget Office.

The findings provide new fuel to opponents of City Hall’s plans to open 90 new shelters across the five boroughs in its latest bid to house roughly 58,000 homeless New Yorkers.

“I support homeless shelters, however I feel if the city opens up a shelter next to a residential building or very very close by, then they should compensate anybody living in [that] building for the difference of the value that it goes down,” said Michael Fisher, a West 58th Street resident who opposes the plans to open a shelter at the shuttered Park Savoy hotel on Billionaires Row.

Manhattan home sellers near adult homeless shelters take a 7 percent to 17 percent hit compared to properties farther away from the sites, according to a new study commissioned by Borough President Gale Brewer.

The study found that if a property over 500 feet away from a shelter sold for $1 million, a comparable residence within that radius sold for about $929,000 — a 7 percent drop.

Homes within 1,000 feet of multiple shelters took an average hit of 17.4 percent.

The report is based on city Department of Finance data on all Manhattan residential sales of condos and one- to three-family homes between 2010 and 2018.

Brewer emphasized that the negative impact only refers to transitional shelters.

“Permanent supportive housing doesn’t affect values at all,” she said.

Shelter providers and homeless advocates blasted the IBO’s study as needless fearmongering.

“The City’s Independent Budget Office has done a tremendous disservice to all New Yorkers by releasing a stunningly flawed, statistically dubious study that lacks basic research methodology,” said Christine Quinn, the former City Council speaker who now runs shelter provider Women in Need. “In doing so, they serve only to reinforce a negative and damaging stereotype about homeless shelters and families in our communities.”

City Hall attacked the study from several angles.

“This report is not only wrong on the facts, it’s morally indefensible,” said spokeswoman Avery Cohen. “Anyone who would withhold help from a family in need to make a bigger profit reselling a home has to take a hard look in the mirror.”

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