The Impact of Airport Noise on House Prices

Using individual house sale data and the release of an airport noise contour map, the relationship between airport noise contours and house prices in Melbourne is studied. House prices are not related to noise contours but annual aircraft movements and distance from the runway are both identified as important determinants of the price of houses near the airport. Houses farther from the airport runway but with the same observable characteristics command a premium of up to 37 per cent which is likely attributable to a range of externalities from the nearby airport including airport noise. Results are robust to tests for time variation in airport disamenity values. The results suggest households use distance to the runway as a proxy for the effects of airport noise.

[1]  David Prentice,et al.  How Do Crime Rates Affect Property Prices? , 2018, Economic Record.

[2]  I. Jodhpur.  Annual Report 2016-17 , 2017 .

[3]  Mark Wardman,et al.  Residential Sorting and Environmental Externalities: The Case of Nonlinearities and Stigma in Aviation Noise Values , 2015, SSRN Electronic Journal.

[4]  Deniz Sari,et al.  Estimation of airport noise impacts on public health. A case study of Izmir Adnan Menderes Airport , 2015 .

[5]  Kathleen A. McCullough,et al.  The Impact of Hurricane Mitigation Features and Inspection Information on House Prices , 2015 .

[6]  Constantinos Antoniou,et al.  How do transport infrastructure and policies affect house prices and rents? Evidence from Athens, Greece , 2013 .

[7]  Christopher F. Parmeter,et al.  Which hedonic models can we trust to recover the marginal willingness to pay for environmental amenities , 2010 .

[8]  Willemijn van der Straaten,et al.  Monetary valuation of aircraft noise; a hedonic analysis around Amsterdam airport* , 2009 .

[9]  Jaren C. Pope.  Buyer Information and the Hedonic: The Impact of a Seller Disclosure on the Implicit Price for Airport Noise , 2008 .

[10]  Jon P. Nelson,et al.  META-ANALYSIS OF AIRPORT NOISE AND HEDONIC PROPERTY VALUES : PROBLEMS AND PROSPECTS , 2004 .

[11]  Daniel P. McMillen,et al.  Airport expansions and property values: the case of Chicago O'Hare Airport , 2004 .

[12]  M.A.J. Theebe,et al.  Planes, Trains, and Automobiles: The Impact of Traffic Noise on House Prices , 2004 .

[13]  Yan Song,et al.  New urbanism and housing values: a disaggregate assessment , 2003 .

[14]  L. Tyrväinen,et al.  Property Prices and Urban Forest Amenities , 2000 .

[15]  Sandra E. Black.  Do better schools matter? Parental valuation of elementary education , 1999 .

[16]  Peter Nijkamp,et al.  WHY DO AIRCRAFT NOISE VALUE ESTIMATES DIFFER? A META-ANALYSIS , 1998 .

[17]  J. Tomkins,et al.  Noise versus Access: The Impact of an Airport in an Urban Property Market , 1998 .

[18]  V. Kerry Smith,et al.  Market segmentation and valuing amenities with hedonic models: The case of hazardous waste sites☆ , 1990 .

[19]  W. Baumol,et al.  The theory of environmental policy: On the theory of externalities , 1988 .

[20]  P. Portney.  The theory of environmental policy , 1976 .

[21]  S. Rosen.  Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition , 1974, Journal of Political Economy.

[22]  Xian Zheng,et al.  Airport noise and house prices: A quasi-experimental design study , 2020 .

[23]  D. Fujiwara,et al.  Living with aircraft noise: Airport proximity, aviation noise and subjective wellbeing in England , 2016 .

[24]  M. Ögren,et al.  Property Prices and Exposure to Multiple Noise Sources: Hedonic Regression with Road and Railway Noise , 2010 .

[25]  Jeffrey P. Cohen,et al.  cleared with the author or authors. Spatial Hedonic Models of Airport Noise, Proximity, and Housing Prices , 2007 .

[26]  M. Espey.  The Impact of Airport Noise and Proximity on Residential Property Values , 2000 .

[27]  国際協力事業団,et al.  Master plan 2010 , 1997 .