Is There a Correlation Between Property Values and Wind Turbines?


Is There a Correlation Between Property Values and Wind Turbines?

property value and wind

 

There has been a lot of debate recently, about the impact of wind turbines on property values. Of course, anti-wind is chiming in loud and clear giving false information about the negative trends of property value when wind turbines are visible or near-by.
 
The fact is, property value, on the whole, is unaffected by wind turbines.
 
In a report by the Lawrence Berkeley National Laboratory, the results show that there is very limited to no negative impact on property values nearby wind farms. In fact, in their conclusion they state:
 

“Although the analysis cannot dismiss the possibility that individual homes have been or could be negatively impacted, the Berkeley Lab research finds that if these impacts do exist in the sample of homes analyzed, they are either too small and/or too infrequent to result in any widespread, statistically observable effect.”

 
So what does this mean exactly? There is a possibility that the property value of a few houses have been negatively affected, however, by and large the majority of homes close to wind turbines are not. There is no statistically significant change in property value after the construction of a wind turbine in the area, even when the house is only a mile from the closest wind turbine!
 
So how did they do the study? According to the report, there are 3 stigma categories for property values in areas where wind turbines are present:
 

  1. Area stigma is the “concern that rural areas will appear more developed” thereby making the area less attractive to live in
  2. Scenic vista stigma is about whether or not the quality of the view will be ruined by seeing wind turbines in the distance
  3. Nuisance stigma is the fear that there will be some kind of impact to people living in the home, that somehow it will be unlivable

 
All 10 study areas, surrounding 24 wind facilities were rated based on these 3 factors and property values were also assessed pre and post wind turbine installation. Additionally, the study team used various statistical models to explore magnitude and statistical significance of potential effects.
 
So what was the most surprising result of all?
 

“Homes nearest the turbines were depressed in value before construction and appreciated the most after construction while homes further away were largely unchanged over time.”

 
So not only were the majority of homes unaffected, but the ones closest to wind turbines actually INCREASED in value!
 
The reality is, this particular study is not the first to come up with these positive conclusions for wind. Although this was the largest study of its kind, the same lab conducted similar studies in both 2009 and 2011 and came up with the same conclusions.
 
To read the report yourself, check it out here: The Impact of Wind Power Projects on Residential Property Values in the United States: A Multi-Site Hedonic Analysis.
 

Posted By Sally on August 30, 2013 | 0 Comment

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