Fears that affordable housing for low-income earners will turn neighbourhoods into ghettos or slums are unfounded in 80 per cent of cases, and have little or no impact on property prices.

The most prejudicial campaigns against low-income developments came from politicians, shows new research.

A housing commission home (centre) between two other houses in Glebe. Credit:Brianne Makin

"We found clear and widespread evidence of prejudice against low-income people in the affordable housing by residents and politicians in all three states," said Gethin Davison, a research fellow at UNSW's city futures research centre.

His team examined some of the most controversial affordable housing developments that went ahead despite vocal opposition in Sydney, Melbourne and Brisbane.