Do political signs in yards lower property values?

Homeowner’s associations often have restrictions about signs and displays owners can have on their property. The supposed goal of all of this is to protect property values. Without such community organizations, someone might do something odd to their property (ranging from painting their door an unusual color to having stuff in the yard to hanging) that would affect selling prices nearby.

Two questions:

  1. Do political signs and displays actually lower property values?
  2. Even if they do drive down property values, isn’t political expression worth it?

Regarding the first question, outside of legal opinions, I cannot quickly find scholarship with empirical evidence about this. I could see how such an argument could be made: certain political opinions or just the clutter of political signs or displays could detract from the particular aesthetic of a block or neighborhood. As realtors often suggest that the interiors of homes should be relatively depersonalized and uncluttered so that any prospective buyer could imagine themselves there, perhaps the same applies for the exterior. If political signs do indeed have a negative effect, I imagine it would be quite small. (Could signs have a positive effect? Perhaps it could indicate the political leanings of a neighborhood that some would find worth knowing. Or, it might suggest a level of political engagement that some could find attractive.)

But, even if political signs have a negative effect, how much are they worth regulating given that Americans typically like to have the right to political expression? Should HOAs have special regulations about signs or displays that go beyond what a municipality might have about size or noise or crowding? (See a recent example involving a large “Impeach Trump” sign in Elgin, Illinois that the owner reduced in size after the city said it violated their codes.) HOAs often go beyond municipal regulations to make sure that property owners are protected against possible threats to their property values.  Why not allow a little more politics in HOA developments rather than clamp down on matters that could be handled by someone else? (There is already a sorting process that goes on for homeowners at the municipal level before they even consider entering an HOA.)

Another argument to make in favor of more freedom for political signage in HOAs is thinking about the common good – theoretically what politics is about – rather than individual property owners. If more speech is better so that all sides have a chance to participate, why would we then allow HOAs to limit some political expressions just so owners can benefit?

Ultimately, homeowners voluntarily enter such communities; they do not have to purchase one of the millions of housing units governed by an HOA. At the same time, many Americans seem willing to enter HOAs to protect their property until they run into regulations they do not like. If higher property values are the ultimate goal of suburban life, perhaps these HOA dispute stories will simply continue because people cannot afford to not utilize them. On the other hand, if HOAs do not serve the common political good, perhaps they should be avoided.

 

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