A CASE STUDY OF THE EFFECTS OF AN AIRPORT ON LAND VALUES

This paper presents and tries to interpret some new evidence on the effect of an airport on the market price of real estate. This is done by comparing one area adjacent to Toronto International Airport (Malton) with similar areas in Metropolitan Toronto during the period 1955 to 1969. This time span encompasses a number of major airport expansions, the introduction of jets, and a general growth in aviation activity. A model is also outlined. The results of this study are reasonably clear in confirming the model originally postulated. Statistically significant differences exist in the pattern of price changes in the vicinity of the airport compared with non-airport areas. The evidence suggests that residential land values fall during periods of substantial change, but that after the change they increase to approximately their previously established long-run trend. While one might be concerned that the evidence presented here is insufficient to reject the null hypothesis that airports have no effect on land values, there can be no doubt that it brings the validity of the hypothesis into question. A more likely explanation than the null hypothesis is that during a "shock" period noise-avoiders sell their residential property, driving down the prices; noise-indifferent people move in and some land is shifted to other uses, thus, in turn, bidding up the price. The overall result of this process is that relative land values ultimately end up about the same as before the shock. The important difference is that the type of residents and the pattern of land use (the "econoscape") change substantially.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/856156
• Corporate Authors:

  London School of Economics and Political Science

  Houghton Street, Aldwych
  London WC2A 2AE,   England 
• Authors:
  • Crowley, R W
• Publication Date: 1973-5

Media Info

• Features: Figures; Tables;
• Pagination: p. 144-152
• Serial:
  • Journal of Transport Economics and Policy
  • Volume: 7
  • Issue Number: 2
  • Publisher: University of Bath
  • ISSN: 0022-5258
  • Serial URL: http://www.jtep.com

Subject/Index Terms

• TRT Terms: Airport noise; Airport operations; Airports; Economic impacts; Finance; Land use; Land values; Mathematical models; Noise; Present value; Real property
• Identifier Terms: Toronto Pearson International Airport
• Uncontrolled Terms: Value
• Subject Areas: Aviation; Economics; Environment; Finance; Highways; Society; Terminals and Facilities;

Filing Info

• Accession Number: 00155673
• Record Type: Publication
• Source Agency: Massachusetts Institute of Technology
• Files: TRIS
• Created Date: Aug 31 1977 12:00AM