The Impact of Homeless Encampments on Housing Prices

Abstract

ABSTRACT A topic of intense and heated discussion in urban America is the impact of homelessness, yet the quantitative evidence is limited. This study examines how proximity to a homeless encampment influences housing prices. Analyzing home sale transaction data in Seattle from 2017 to 2020, our hedonic models reveal that houses within 0.75 miles of an encampment sell for about 2.0% less (equivalent to an average impact of $17,445). Quantile regressions show that this negative effect persists across most market segments and is most pronounced in 2018–2019, when Seattle recorded the highest number of encampment removals. Results remain generally robust after adjusting for spatial autocorrelation.