Some Won't Buy Near An Airport At Any Price
While it may be very difficult to calculate the actual impact on the market value of any given home, common sense says that residential homebuyers avoid noisy locations. Real estate studies have reported that a slight majority (over 50%) of buyers "will not purchase a property that is close to a major airport at any discount." "The Impact of Noise On Residential Real Estate", Randall Bell, The Appraisal Journal, July 2001
Studies Have Shown A Negative Impact On Property Value
Numerous studies have documented the negative impact on residential property values near airports from aircraft noise. Estimates range from 0.6 to 2.3 percent decrease in property value per decibel increase of cumulative noise exposure.
Readington Township’s aviation consultant, Richard Golazewski of GRA, Incorporated, reviewed the literature from prior airport noise studies in a paper prepared for the township in April, 2006. More conservative than some of the published studies, Golazewski found that “The empirical estimates of the impact of aircraft noise range from about 0.6 percent to more than 1.0 percent decrease in property values per one dB increase in noise levels. As such, while the use of any estimate should reflect the variability in prior research about the costs of aircraft noise, a decline in property value of about one percent per one dB increase in noise would be a reasonable economic value.” "A Technical Note On Aircraft Noise and its Cost to Society", R. Golazewski, A. Lazic GRA Inc. April 2006
Just The Announcement Of Expansion May Bring A Decline In Market Value
Jud and Winkler published a study in 2006 focusing on the effect that the announcement of airport expansion had on property values at Winston/Salem airport. Jud and Winkler found that “after controlling to extraneous influences, housing property prices in a 2.5 mile band from the Greensboro/High Point/Winston Salem metropolitan airport declined approximately 9.2% in the post-announcement period. In the next 1.5-mile band, house prices declined approximately 5.7% in the post-announcement period."The Announcement Effect of an Airport Expansion on Housing Prices" G. Donald Jud & Daniel T. Winkler J Real Estate Finan Econ (2006) 33:91-103
The Effects Of Noise On Prices Are Highest In Moderately Priced & Expensive Neighborhoods
In 1994, the consulting firm Booz-Allen prepared a report for the FAA that compared market prices in similar neighborhoods that differed only in the level of airport-related noise. Booz-Allen found that the effect of noise on prices was highest in moderately priced and expensive neighborhoods. The study found “an average of 18.6 percent higher property value in the quiet neighborhood, or 1.33 percent per dB (decibel) of additional quiet.” "The Effect of Airport Noise on Housing Values: A Summary Report", Booz Allen & Hamilton, Inc. September 15, 1994
What About the Solberg's Claim that Housing Values Have Gone Up Near Airports?
If the market value of a property has already been discounted because it is close to an airport, then the value of that home may rise as the general real estate market rises. But, the market value of a property near the airport will not increase as much as a similar property located elsewhere.