Property Values Dive As Noise Levels Rise

Advisory Report - 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.