Effects of Airport Noise on Housing Value
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“In 1994 the consulting firm of Booz-Allen & Hamilton, Inc. prepared a report titled The Effect of Airport Noise on Housing Values: A Summary Report for the Federal Aviation Administration. The report describes a methodology for evaluating the impact of noise on housing values. The methodology essentially compares market prices in similar neighborhoods that differ only in the level of airport-related noise. In pilot studies using this method, Booz-Allen found that the effect of noise on prices was highest in moderately priced and expensive neighborhoods. In two paired moderately priced neighborhoods north of Los Angeles International Airport, the study found "an average 18.6 percent higher property value in the quiet neighborhood or 1.33 percent per dB of additional quiet." (See Bibliography: Impacts of Noise on Property Value.)
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A 1996 study funded by the Legislature of the State of Washington used a somewhat similar methodology and found that the proposed expansion of Seattle-Tacoma Airport would cost five nearby cities $500 million in property values and $22 million in real-estate tax revenue. The study of single-family homes -- all in "very good" condition, with three or more bedrooms and two or more baths, and excluding the most expensive and inexpensive units to provide more representative comparisons -- found that "a housing unit in the immediate vicinity of the airport would sell for 10.1 percent more -- if it were located elsewhere."
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The Impact of Airport Noise on Residential Real Estate - by Randall Bell, MAIAs
“As populations and airports expand, airport noise is an increasingly important issue for real estate analysts. In researching real estate damage issues, the topic of airport noise and its impact on property market values are particularly well-documented and well-researched areas. This article puts airport noise into the framework of the Detrimental Conditions (DC) Matrix, outlines the measurement of “noise,” sets forth some of the health effects of airport noise, and addresses the impact that airport noise has on property market values. There are dozens of published studies on the topic, all of which virtually come to the conclusion that homes under or nearby the flight corridors of national or international airports experience some diminution in property market values....
The Impact of Airport Noise on Market Values When commercial jet operations commenced in1959, the Federal Aviation Administrator had to get an unlisted home phone number because outraged citizens called him at night and harassed him about aircraft noise.9 The subject still strikes an emotion accord with many people today, and the body of published literature consistently reflects a real and negative impact on property market values. Some have speculated that the convenience and economic revenues from an airport serve to offset any diminution in value; however, nothing in the body of published literature supports this notion. In fact, it is directly dispelled in an article published in the Journal of Transport, Economics, and Policy, which utilizes hedonic regression to show that NNI 50 properties sustain a diminution in value ranging from approximately -7% to -12%.10 While tremendous economic benefits and revenues clearly are associated with a large airport, those under or nearby the flight path tend to suffer a net negative impact. “
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