Do the limited prices of shared equity homes reduce the appraised value of nearby market rate homes?

No, they do not. Market rate homes and shared equity homes are appraised on a very different basis.  Just as condo sales prices don’t end up impacting appraisals for detached homes, shared equity units are understood by appraisers as a different kind of asset from market rate homes. Appraisal guidelines instruct appraisers to avoid using price restricted homes as market comparables when they evaluate the value of unrestricted homes.  This only makes sense as the price of a restricted home is set by a formula and therefore provides no indication of the market value of nearby homes.  While an appriaser may occasionally make a mistake, it is not common for appraisers to use units that are identified as restricted in their market appraisals.