Effect of Proximity and View on Sales Prices
by Ben Hoen, Ryan Wiser, Peter Cappers, Mark Thayer, and Gautam Sethi,
published in the Journal of Real Estate Research
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The following article has been included in the TARF website with permission from The American Real Estate Society. The article, Wind Energy Facilities and Residential Properties: The Effect of Proximity and View on Sales Prices by Ben Hoen, Ryan Wiser, Peter Cappers, Mark Thayer, and Gautam Sethi was published in the Journal of Real Estate Research in Volume 33, No. 3, 2011. Author contact information is found at the end of the article.
This paper received a manuscript prize award for the best research paper on Sustainable Real Estate (sponsored by the NAIOP Research Foundation) presented at the 2010 ARES Annual Meeting.
Increasing numbers of communities are considering wind power developments. One concern within these communities is that proximate property values may be adversely affected, yet there has been little research on the subject. The present research investigates roughly 7,500 sales of single-family homes surrounding 24 existing wind facilities in the United States. Across four different hedonic models, and a variety of robustness tests, the results are consistent: neither the view of the wind facilities nor the distance of the home to those facilities is found to have a statistically significant effect on sales prices, yet further research is warranted.