Impact of mental health facilities on property values

Community opposition to the establishment of a small-scale mental health facility is often intense. One frequently voiced fear is that the estabishment of a facility will cause property values in its vicinity to decline. This paper examines empirical evidence of the impact on property values in the neighborhood of 12 mental health centers in Philadelphia. It is concluded that such facilities have an indeterminate effect on property values in their vicinity, contary to popular opinion.