February 2000
Property Values Dive As Noise Levels Rise
A study on the effect that noise
levels near airports have on property values reveals that as noise
levels increase, property values tend to decrease. The Orange
County Business Council study, which was conducted in conjunction
with a group of Orange County real estate professionals, ties
closely to other studies that have been performed on the subject.
The experience of other communities
near airports has been that properties located near the airport, but
on acceptable noise contours, have tended to increase in value;
properties exposed to the highest noise levels--65 Community Noise
Equivalent Level (a statistic that averages airplane noise with the
quiet moments between planes) and above--have tended to drop by 0.5%
or 0.6% incrementally.
The Orange County Business Council
and representatives of the real estate community have jointly
managed a review of the literature on this topic and have also
examined the attitudes of new homeowners in Orange County toward the
proposed airport and their home purchases. The study also
found that:
- Lack of information to the home purchaser
relative to proposed public works projects, including airports, is a
problem and contributes to the unpredictability of the surrounding real
estate market. Adequate and accurate levels of information to home
buyers will lead to informed home purchase decisions and more stable,
predictable residential real estate markets.
- Higher value homes tend to be more
impacted than lower value homes.
- Noise is clearly the most significant
airport factor vis-à-vis property values.
The study's research was conducted by Wallace
Walrod, Ph.D., Vice President of Research and Communications for the Orange
County Business Council. The complete study, including the new
homeowner survey and its results, will soon be available at www.ocbc.org.
Other stories in this month's report:
