Effects of Airport Noise on Housing Value

“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.)

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."

http://airportnoiselaw.org/propval.html

http://www.airportnoiselaw.org/study901.html

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