Folks, some residents are being told there are no studies/evidence supporting lower property values around airports. The truth is, there are countless studies. Here is what some of the experts have said: Jon P. Nelson Department of Economics, Pennsylvania State University The perception of noise doubles in loudness for every 10 dB increase in sound level. An 80 dB sound is perceived to be twice as loud as a 70 dB sound, four times louder than a 60 dB sound, and eight times louder than a 50 dB sound. Hence, a given property located at 55 dB would sell for about 10-12 percent less if it was located at 75 dB, all other things held constant. AIRPORT EXPANSIONS AND PROPERTY VALUES: THE CASE OF CHICAGO O’HARE AIRPORT Daniel P. McMillen Dept of Economics & Institute for Govt and Public Affairs, University of Illinois The results indicate that home values were about 9% lower within a 65 dB noise contour band of O’Hare in 1997. Airports generate air pollution and severe traffic congestion. THE EFFECT OF AIRPORT NOISE ON HOUSING VALUES: A SUMMARY REPORT FOR THE FEDERAL AVIATION ADMINISTRATION Booz-Allen & Hamilton All other things remaining equal, the value of a house and lot increases by about 3.4% for every quarter of a mile the house is farther away from being directly underneath the flight track of departing/approaching jet aircraft 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. THE IMPACT OF AIRPORT NOISE ON RESIDENTIAL REAL ESTATE Randall Bell, MAI Founded the Real Estate Damages practice of PriceWaterhouseCoopers A significant portion of the population will not live in a home that is impacted by airport noise at any cost or discount. Detached housing tends to be impacted more than semi-detached or terraced housing. The data suggests that more expensive homes tend to be impacted more than less expensive homes. Rural areas tend to be impacted more than suburban areas, which in turn tend to be impacted more than urban areas. The impact on single family residences ranges from –15.1% to –42.6, and averages – 27.4%. This does not include the costs of noise mitigation measures that individual homeowners may incur. The rental rates for the LAX office are from 19.1% to 43.3% lower than any other office market in the surrounding South Bay area and also have the highest vacancy rate at 38.1%. SPATIAL HEDONIC MODELS OF AIRPORT NOISE, PROXIMITY, AND HOUSING PRICES Jeffrey P. Cohen Barney Stinson School of Business, University of Hartford Cletus C. Coughlin Research Division, Federal Reserve Bank of St. Louis In the FAA’s judgment houses subject to noise levels of 65or more decibels are not suitable for residential housing. According to the website of Hartsfield’s Noise Mitigation Program, since the 1980s they already have undertaken “sound insulation of approximately 10,150 structures at a cost of about $174.5 million” as well as “relocation of residents, including the acquisition of over 2,720 structures at a cost of about $171 million. BUYER INFORMATION AND THE HEDONIC: THE IMPACT OF A SELLER DISCLOSURE ON THE IMPLICIT PRICE FOR AIRPORT NOISE Jaren C. Pope Dept of Economics, Brigham Young University In June of 1987 American Airlines opened a hub at Raleigh-Durham, causing the number of flights at the airport to approximately double. This change increased the amount of aircraft related noise experienced by nearby homeowners. After this expansion, 125 homeowners sued the Raleigh-Durham Airport Authority (RDU) complaining that the increased noise had reduced their property values. In 1992 RDU settled the lawsuit by agreeing to pay 1.8 million dollars to the 125 homeowners. The average compensation received by the homeowners participating in the lawsuit was $14,400. (Adjusted 2011 value $23,040)
Posted on: Sun, 10 Nov 2013 18:12:22 +0000
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