Beyond the Myths: Senior Living Communities and Property Values
“We all deserve to age in place in the neighborhoods we love. Let’s build communities that work for everyone.”
The truth about what happens when senior housing development joins your neighborhood
When word spreads that a senior living community might be moving into the neighborhood, the whispers begin. Property values will plummet. Traffic will increase. The character of our beloved neighborhood will change forever.
These fears are understandable. For most of us, our homes represent not just shelter but our largest investment and a cornerstone of our financial future. Any perceived threat to that investment naturally triggers concern.
But what if those fears are based on myths rather than reality? What if decades of research and real-world examples tell a completely different story?
The Gap Between Perception and Reality
Right now in Saranap, we're witnessing this dynamic play out. The Carnelian, a long-established senior living community, is planning an expansion. Predictably, some neighbors are worried about what this means for their property values.
But here's what the evidence actually shows: properly designed and operated Residential Care Facilities for the Elderly (RCFEs) don't harm surrounding property values. In fact, they often have no impact at all or even contribute positively to neighborhood stability and home values.
This isn't speculation—it's backed by rigorous research. The American Planning Association's comprehensive review of over 50 studies concluded that group residences have no negative effects on neighboring property values, even for homes located right next door [American Planning Association, 1997]. These facilities frequently blend seamlessly into residential areas, maintaining or even enhancing neighborhood aesthetics with their well-maintained properties.
When researchers in Finland analyzed housing sales, they found that senior housing developments had a "significant positive impact on residential property values" within a 500-meter radius, with the strongest benefits in moderate-value neighborhoods [Kurvinen and Tyvimaa, 2016].
The Carnelian: Five Decades of Coexistence
For skeptics, The Carnelian itself provides compelling evidence of successful integration. Since the 1970s, this senior living community has been a fixture in Saranap, and during those five decades, local property values have consistently risen alongside broader market trends, with no evidence of negative impact. In fact, many current neighbors deliberately chose to purchase their homes with full knowledge of The Carnelian's presence—a clear indication that it hasn't deterred investment or diminished the area's appeal.
Some concerns mistakenly classify The Carnelian as a "commercial building," but this fundamentally mischaracterizes its nature. It's officially designated as a Residential Care Facility for the Elderly, with "Residential" being the operative word. Unlike true commercial developments that generate significant traffic and noise, The Carnelian maintains quiet routines, low visitor traffic, and stable patterns—qualities that align perfectly with residential neighborhood expectations. The Carnelian blends so seamlessly with its surroundings that most people in the neighborhood are unaware an assisted living facility exists in the area.
The Sufism Sanctuary: When Opposition Proved Unfounded
Still unconvinced? Consider another local example: the Sufism Reoriented Sanctuary in Saranap. While not a senior facility, this 66,000-square-foot development faced fierce opposition when proposed in 2010-2011. More than 700 letters and petition signatures opposed the project, with property values being a central concern.
What happened after the sanctuary opened in 2017? The evidence speaks volumes:
Before construction (2011): Homes typically sold for $600,000-$800,000
After opening (2017-2018): Home prices soared to well over $1 million
By 2024: Values reached approximately $1.6 million—a 160% increase matching broader Walnut Creek growth
By early 2025: The median property value in Saranap hit $1.9 million
Most tellingly, properties directly across from the sanctuary—those theoretically most vulnerable to negative impacts—sold at market-high prices. A nearby 4-bedroom home sold for $1.2 million in 2019, above asking price, completely in line with other area sales.
The community's concerns shifted entirely within a few years. By 2016-2018, during planning for another development called Saranap Village, some residents weren't worried about declining values anymore—they feared new development would make homes and rents too expensive (East Bay Times, 2016)!
California Sources Confirm Findings
It's not just academic research that supports these conclusions—California's official sources tell the same story. A report by the California Research Bureau states that studies "conclude that residential care facilities do not have a negative affect on neighborhood safety and property values" (California Research Bureau, 2014). This matches California's broader policy approach supporting community-based care options for seniors.
Legal precedents reinforce this view. In Hall v. Butte Home Health, Inc. (1997), California's Court of Appeal found "no evidence the operation of the facility has had any effect on property values in the area" (Hall v. Butte Home Health, 1997). The court specifically noted that professionally operated facilities that match their surroundings don't create the negative impacts that many neighbors fear.
The California Department of Housing and Community Development's 2022 guidance confirms that "numerous studies, representing decades of research, have found that fears [of lowered property values] are unfounded" (California HCD, 2022). According to HCD, these facilities often blend so seamlessly into communities that residents may not even realize they exist.
The California Senate Health Committee's 2017 review also found no evidence that licensed group homes reduce surrounding property values (California Senate Health Committee, 2017). Across these sources—from research bureaus to courts to housing agencies to legislative committees—the conclusion is clear: well-designed and managed facilities integrate smoothly into neighborhoods without negative property impacts.
The Carnelian Project: Successful Neighborhood Integration for Senior Living
The quality of integration significantly influences how senior living communities affect their neighborhoods. The Carnelian's current expansion offers a valuable case study in how key integration principles translate from theory to practice through thoughtful implementation of design elements specifically chosen to protect neighborhood character.
Five factors stand out as particularly important in successful integration:
Architectural Compatibility: Facilities that reflect the surrounding architectural character gain greater community acceptance. The Carnelian Project maintains a 25-foot height similar to surrounding two-story homes while incorporating distinctly residential features: board-and-batten siding, additional windows, and traditional roof dormers that help the facility look like a home rather than an institution. These design cues from the Saranap neighborhood ensure the building "looks like it belongs," making neighbors more likely to welcome it.
Thoughtful Site Planning: Strategic building placement and orientation create appropriate transitions between the facility and neighboring homes. Instead of expanding outward, the Carnelian's design builds on an underutilized concrete area of their property, minimizing disruption while providing necessary space for residents. The increased setbacks on the east neighbor fenceline create breathing room between the facility and adjacent properties—a change with significant impact on preserving privacy and neighborhood feel.
Comprehensive Landscaping: Professional landscaping does more than create visual appeal—it provides natural buffers, screens views, reduces noise, and enhances overall neighborhood beauty. The Carnelian's landscaping strategy, developed by a local landscape architect, includes full-grown trees, fast-growing vines, and diverse plantings that create natural screens and reduce noise. Italian cypress trees along the fence line provide an attractive visual buffer that enhances rather than detracts from neighborhood aesthetics.
Traffic Management: Senior housing generates fewer vehicle trips than most residential uses, with different peak patterns than surrounding single-family homes. The Carnelian has moved staff parking and deliveries to Flora Avenue, reducing daily traffic along Warren Road. For larger events, an offsite parking arrangement with shuttle service keeps visitor vehicles away from residential streets altogether. Other measures include designated delivery times and comprehensive staff parking plans.
Operational Considerations: Beyond physical design, how a facility operates significantly impacts neighborhood relations. Regular maintenance, scheduled deliveries, and responsive staff all contribute to harmonious integration. Facilities with high operational standards protect property values by ensuring they remain assets rather than potential nuisances. The Carnelian also maintains an excellent track record with the licensing body, further demonstrating their commitment to quality operations.
Even the building's perceived scale—a common worry for neighbors—has been carefully managed through setbacks, an articulated façade, and residential architectural features that help the expansion feel appropriate for its surroundings.
Most importantly, the design process has actively incorporated community feedback, addressing concerns early and building foundations for positive long-term relationships. This collaborative approach recognizes that successful integration isn't just about physical design—it's about becoming a valued part of the neighborhood fabric.
Beyond Property Values: The Broader Benefits
While property values remain a primary concern, thoughtfully integrated senior living communities like The Carnelian deliver numerous additional benefits to their neighborhoods. These facilities enhance local aesthetics through professional landscaping and park-like grounds that contribute positively to the area's overall character and visual appeal.
More fundamentally, senior communities serve as stable neighborhood anchors, fostering community identity and continuity in an era of frequent change. This "aging in place" opportunity represents perhaps the most significant benefit—creating intergenerational connections and preserving neighborhood history and knowledge that might otherwise be lost. When longtime residents can remain within their established communities as their housing and care needs evolve, everyone benefits from the continuity, wisdom, and community memory they provide. The Carnelian has proudly served hundreds of seniors from Saranap, Rossmoor, and the broader Walnut Creek area, allowing these longtime residents to age in place within the community they call home.
The Fear Factor
The persistent belief that senior living facilities harm property values reveals something fascinating about human nature: we tend to fear what we don't fully understand. When faced with neighborhood change, it's natural to imagine worst-case scenarios.
But when we look past fear to facts, the evidence consistently tells a different story. Well-designed, well-maintained senior living facilities have coexisted with residential neighborhoods for decades while surrounding property values have continued appreciating with broader market trends.
For concerned homeowners, the research offers reassurance: your home's value is typically more influenced by school quality, crime rates, market conditions, and inherent property characteristics than by a thoughtfully designed senior living community nearby.
By focusing on collaborative approaches rather than opposition, communities and senior living providers can create developments that enhance both property values and quality of life for all residents—including the seniors who deserve to live with dignity in the neighborhoods they call home.
After all, with longer lifespans and an aging population, many of us will eventually need the very communities some oppose today. By embracing thoughtful integration now, we're not just protecting our property values—we're investing in our own futures.
References
American Planning Association. (1997). Policy Guide on Community Residences. https://www.planning.org/policy/guides/adopted/groupresidences.htm
Kurvinen, A. T., & Tyvimaa, T. (2016). The impact of senior house developments on surrounding residential property values. Property Management, 34(5), 502–519. https://www.emerald.com/insight/content/doi/10.1108/pm-11-2015-0059/full/html
Zahirovic-Herbert, V., & Gibler, K. M. (2019). Neighbouring house transaction response to assisted living facilities and nursing homes. Housing Studies, 35(2), 195–213.
Contra Costa County Assessor's Office. (2025). Property Value Assessment Report.
California Advocates for Nursing Home Reform (CANHR). (2025). Overview of Assisted Living / Residential Care Facilities for the Elderly (RCFEs).
Jolanki, O. (2020). Senior housing as a living environment that supports well-being in old age. Frontiers in Public Health, 8. https://www.frontiersin.org/journals/public-health/articles/10.3389/fpubh.2020.589371/full
California Research Bureau. Lisa Foster. Residential Care Facilities in the Neighborhood: Federal, State, and Local Requirements.
California Department of Housing and Community Development (HCD). (2022). Guidance on community residences and group homes.
California Senate Health Committee. (2017). SB 786 Legislative Analysis.
Hall v. Butte Home Health, Inc. (1997) 60 Cal.App.4th 308, 70 Cal.Rptr.2d 845.
Walnut Creek Patch. (2012). Saranap Residents Divided By Sanctuary Plan.
KQED. (2012). Comments on the Proposed Sufi Sanctuary in Contra Costa County.
East Bay Times. (2016). Contra Costa: Sufism center to open soon; 'Village' still pending.