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Myth and Fact 15 <br />MYTH TWO FFACTTWO <br />Concerned citizens should use the entitlement process to demand high-quality <br />development in their communities while understanding that density and adjacent <br />property values are not inversely related. Higher-density real estate developers <br />and investors in higher-density real estate need to appreciate the fact that most <br />Americans’ wealth is held in their home equity. Therefore, changes in property <br />values can have very real consequences to existing property owners. Likewise, <br />homeowners would benefit from knowing that developers make a substantial <br />financial commitment when investing in new higher-density projects. This invest- <br />ment is an incentive to make the project successful, which can give the commu- <br />nity leverage in working with the developer. Such interrelated and overlapping <br />economic interests among these stakeholders make it all the more likely that a <br />mutually beneficial agreement can be reached. Such an agreement can result in <br />a project that enhances the existing community, ensures the appreciation of resi- <br />dents’, developers’, and the local government’s financial interests, and addresses <br />the needs of current and future residents of the community and region. <br />3.0% <br />2.5% <br />2.0% <br />1.5% <br />1.0% <br />0.5% <br />0% <br />AVERAGE ANNUAL APPRECIATION FOR SINGLE-FAMILY <br />DETACHED HOMES BY NEARNESS TO MULTIFAMILY BUILDINGS <br />Not Near <br />Multifamily <br />2.66% <br />Near <br />Multifamily <br />2.90% <br />Near <br />Low-Rise <br />Multifamily <br />2.91% <br />Near Mid- <br />or High-Rise <br />Multifamily <br />2.79% <br />AVERAGE ANNUAL APPRECIATION RATE <br />PROXIMITY TO MULTIFAMILY <br />Source:NAHB computations based on data in the American Housing Sur vey: 1997 and 1999 (Washington, D.C.: <br />U.S. Bureau of the Census and U.S. Department of Housing and Urban Development, 1997 and 1999).