THE EFFECT OF NOISE BARRIERS ON THE MARKET VALUE OF ADJACENT RESIDENTIAL PROPERTIES

The problem of how highway noise affects house prices and how highway noise barriers alter that effect is addressed. The project began with a set of house price data available in the Property Office of the Ontario Ministry of Transportation and Communications. These data were augmented with housing characteristics and sales data obtained from the Toronto Real Estate Board. All of the data were from three residential areas of Toronto situated behind highway noise barriers. In a multiple linear regression, in which a variety of other housing characteristics are controlled for, the coefficient of noise level (in 1981 dollars) varies from -$312/dB at one site to -$356/dB at a second site, to -$2,971/dB at a third site, all of which coefficients are statistically significant at the .05 level. The pooled sample estimate is -$778/dB. The first two values are generally consistent with results of earlier studies, although perhaps a bit lower. Nonlinear regressions of noise level and functions that ignored noise until it was around 65 dB were also investigated. Those results supported neither a quadratic function nor any clear threshold effect. Close inspection of the data at the site with a -$2,971/dB value suggests that these data may not be representative of the relevant population, in that expensive houses in high noise environments are not properly represented in the sample. As a result, the extremely large estimated noise penalty is probably a statistical anomaly. Because the pooled sample noise penalty of -$778/dB reflects in part the data from that site, it too may be nonrepresentative of the population noise penalty. It is clear from these data that house sales in areas protected by noise barriers reflect the same kind of valuation of noise as do sales in unprotected noisy areas.

• Record URL:
  • http://onlinepubs.trb.org/Onlinepubs/trr/1987/1143/1143-001.pdf
• Record URL:
  • https://scholar.google.com/scholar_lookup?title=THE+EFFECT+OF+NOISE+BARRIERS+ON+THE+MARKET+VALUE+OF+ADJACENT+RESIDENTIAL+PROPERTIES&author=F.+Hall&author=J.+Welland&publication_year=1987
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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:
  • Hall, Fred L
  • Welland, J Douglas
• Publication Date: 1987

Media Info

• Media Type: Print
• Features: Figures; References; Tables;
• Pagination: pp 1-11
• Monograph Title: Environmental issues: noise, rail noise, and high speed rail
• Serial:
  • Transportation Research Record
  • Issue Number: 1143
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Dwellings; Linear regression analysis; Market value; Multiple regression analysis; Noise barriers; Prices; Property values; Residential areas; Sound level; Traffic noise
• Old TRIS Terms: Multiple regression
• Subject Areas: Highways; Public Transportation; Terminals and Facilities;

Filing Info

• Accession Number: 00469599
• Record Type: Publication
• ISBN: 0309046521
• Files: TRIS, TRB, ATRI
• Created Date: Jul 31 1988 12:00AM