Homes close to a highway – but not too close – worth more
NEW YORK – Dec. 3, 2018 – A 2016 study in the journal Transportation looked at sales prices of 269,000 homes before and after the 2004 completion of two large highways in the Netherlands and concluded it is profitable to live close to a highway – but not too close.
The researchers found that highway construction has a "generally positive" effect on area housing prices, though that impact varies depending on a home's precise location.
Improved accessibility raised home values; but for properties right by the new road, this effect was counteracted by increases in noise and traffic density.
The researchers found that the highway developments increased home prices by approximately 5 percent in the run-up to their opening, and by 2.5 percent to 4.3 percent in the years following completion.
The results track with those from a 2015 study published by researchers at Florida Gulf Coast University and appraisal firm American Valuation in the Journal of Sustainable Real Estate. In that paper, the researchers examined 1,025 single-family homes in 19 suburban Florida neighborhoods located along existing highways. They found that sales prices were 4 percent lower for homes directly adjacent to the highway compared with homes not directly adjacent.
The study also found that sales prices fell 0.8 percent with each unit increase in traffic volume.
On the other hand, prices dropped 2.5 percent with each additional mile of driving distance between a house and the nearest highway on-ramp, indicating that proximity to transportation is desirable.
Source: Wall Street Journal (11/27/18) Bonislawski, Adam
© Copyright 2018 INFORMATION INC., Bethesda, MD (301) 215-4688
Information provided by Florida Realtors. Click here to see the original article.
Reprinted with permission Florida Realtors. All rights reserved.