Economist: If order is maintained, Seattle’s new homeless camps won’t damage property value

Seattle residents worried that the city’s new homeless camps will damage their property value may not have to, as long as order is maintained.

A real estate economist says homeless camps, such as the controversial Ballard camp on NW Market Street, will not impact home values. That is, if the city and law enforcement make sure things don’t get out of hand.

“As long as they are controlled and police are aware of them, and there’s no illegal activity going on in terms of housing … they don’t really have as much of an impact on housing values as people may think,” said Dr. Randall Bell, CEO of Landmark Research Group, LLC.

Related: Ballard Chamber, City of Seattle at odds over homeless alternatives

“Controlled” seems to be the operative word there. If things around the camp are orderly, and there aren’t noticeable changes to the surrounding area, property owners shouldn’t have to worry about diminishing values.

“On the other hand, if it gets out of control and crime rates go up, and so on and so forth, then that’s a problem,” Bell continued.

The City of Seattle could open two new homeless camps as early as November, The Seattle Times reports. That includes the one at 2826 Market St. and one in the Interbay neighborhood. The Ballard site has been the target of heavy criticism from some residents who worry about increased crime rates and property values.

During a meeting in mid-October, one resident demanded the city release its plans for a fence around the property.

“Good fences make good neighbors,” the person said, according to King 5.

But organizers for the camp promise the tenants will be good neighbors. The camps are necessary to help an increasing homeless population with a limited number of shelters, they argue. Just take a look at the statistics: More than 10,000 people were counted as homeless during the January One Night Count, an increase of about 2,000 in 10 years. Of those people, 3,772 were considered to be living on the street.

The discussion about lowering property values comes up with halfway- and rehabilitation-housing as well, Bell points out. An analysis of the areas would need to be conducted for any certainty, but Bell, who donates his time to homeless programs, believes the homeless camps won’t be a problem for homeowners.

“A lot of the efforts I participate in … they don’t cause problems,” he said.

And it’s unlikely the city would take responsibility for any impact on home values. The zoning alone could justify that, Real Estate Today host Tom Kelly says.

“The city would most likely say the impact on residences would be little, if any, because the lot is in a retail area,” Kelly wrote.

Though there are people protesting the choice of the Ballard site who have gone so far as to start a petition against the decision, others have come out in support of it. Seattle Mayor Ed Murray argues there’s an urgent need to open the camps, The Times reports. In the year since the city started working to get the homeless camps up and running, 30 homeless people have died in the city.

The camp could open Nov. 9. The current plan is for at least 40-50 people to live in tiny homes and tents.