"Not in my backyard": The impact of recovery residences on property values

In 2023, an estimated 39.6 million adults aged ≥ 18 years had a substance use disorder (SUD) and 94.7 % did not seek treatment. Recovery residences provide essential support for individuals recovering from SUD, yet their presence in residential neighborhoods often raises concerns on potential decline in property values. Our study examines the relationship between presence of recovery residences and median home values at the census tract level in Texas.

We used publicly available tract-level data on area, total population, housing units, CDC/ATSDR Social Vulnerability Index (SVI), and median home values. Data on the recovery residences were obtained from a cross-sectional statewide survey of substance use service providers. Census tracts with and without recovery residences were matched using a k-nearest neighbors (KNN) algorithm. Logistic regression and permutation tests were used to assess differences in median home values between matched tracts.

Results from comparison of 329 census tracts with recovery residences and 1161 matched controls showed no significant association between presence of recovery house and property values, after adjusting for population and the covariates that are used for KNN matching. Sensitivity analysis showed no significant association between median home value and the presence of recovery housing.

Our findings suggest no significant association between the likelihood of a tract having recovery residence and home values. Policymakers should consider these findings when addressing zoning restrictions and community opposition to recovery housing.