THE EFFECTS OF TRAFFIC SOUND AND ITS REDUCTION ON HOUSE PRICES

Sales histories of two residential neighborhoods bordering on an Interstate highway were examined to determine the effect of traffic sound reduction on house prices. Sound levels were reduced in one of the neighborhoods by building a barrier along the highway. The second neighborhood, which remained unshielded, served as a comparison area. Before the barrier was built in the first neighborhood, sound levels in both neighborhoods were determined primarily by proximity to the highway. Analysis of house prices showed that, in the absence of shielding, houses nearest the highway sold for less than equivalent houses farther away. The magnitude of this highway-proximity effect, measured in percent of house value per decibel of sound gradient, was consistent with similar estimates previously reported in the literature. The proximity effect on prices appears to have persisted long after the barrier was built. Hence, although the barrier reduced the level of traffic sound and annoyance in the shielded neighborhood, there was no evidence that these benefits were capitalized into higher house prices. The results of this study therefore suggest that hedonic price regressions (which are not based on true treatment-control data) may overestimate the potential economic benefits of traffic sound reduction.

• Record URL:
  • http://onlinepubs.trb.org/Onlinepubs/trr/1985/1033/1033-003.pdf
• Summary URL:
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• Supplemental Notes:
  • Publication of this paper sponsored by Committee on Transportation-Related Noise and Vibration. Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved.
• Authors:
  • Kamerud, Dana B
  • von Buseck, Calvin R
• Publication Date: 1985

Media Info

• Media Type: Print
• Features: Figures; Photos; References; Tables;
• Pagination: pp 16-22
• Monograph Title: Issues in transportation-related environmental quality
• Serial:
  • Transportation Research Record
  • Issue Number: 1033
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Costs; Economic benefits; Housings; Noise barriers; Noise control; Property values; Traffic noise
• Uncontrolled Terms: Noise reduction
• Subject Areas: Economics; Finance; Highways; Planning and Forecasting; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 00458223
• Record Type: Publication
• ISBN: 030903924X
• Report/Paper Numbers: HS-040 008
• Files: TRIS, TRB
• Created Date: Sep 30 1986 12:00AM