Increasing Local Property Values
Many homeowners are concerned when an urban renewal project is announced, and their main worry is that their own property values will fall. Part of this is due to the type of project that is being proposed, but in most cases the concern about property values is a valid one. If a block of homes is being replaced with commercial buildings, homeowners are concerned about increased noise and traffic. An area of new residences might be seen as a way to devalue older properties due to their age. These concerns all must be addressed before a project can proceed.
For those who live in a residential area, commercial developments are not always welcome. Increased noise and traffic are often cites as unsolvable issues, but good planning can avoid problems down the road. Commercial areas do attract a great number of people, but they are generally inhabited only during normal business hours. While there will be an increase in noise and traffic, it should not bother the residents during nights and weekends.
The lowering of property values in older neighborhoods has been the outcome of some urban renewal projects, so residents should voice their concerns when a project is proposed. Many areas where updated homes have been built have found that projects do not always cause a loss for them. If any combination of housing and new businesses is built near an older neighborhood, residents of long standing have found it increases the value of their homes due to the nearness of new commercial services. There is also a trend of home buyers to seek out these older neighborhoods and update the houses to match their needs.
There are good and bad urban renewal projects, and each city must decide what is best for their community. Many of them bring huge benefits to local residents, and they encourage growth of new businesses as well as those that have been established in the area for years.