Noise Expectation and House Prices

17 Pages Posted: 27 Sep 2012

See all articles by Andreas Mense

Andreas Mense

FAU Erlangen-Nürnberg

Konstantin A. Kholodilin

German Institute for Economic Research (DIW Berlin)

Date Written: September 1, 2012

Abstract

In this paper, we examine the effects of an airport expansion on the prices of houses and flats located under the planned flight corridors. We focus on the role of expectations about the exposure to noise and find that proximity to the planned corridors significantly reduces real estate prices in the affected areas, by around 41% to 60%, depending on the sample. Hereby, the various plans of expanding Berlin-Brandenburg Inter- national airport are used as a source of exogenous variation.

Keywords: airport noise, housing prices, price expectations, quasi-experiment, spatial effects

JEL Classification: C21, L93, R31

Suggested Citation

Mense, Andreas and Kholodilin, Konstantin A., Noise Expectation and House Prices (September 1, 2012). DIW Berlin Discussion Paper No. 1244. Available at SSRN: https://ssrn.com/abstract=2152209 or http://dx.doi.org/10.2139/ssrn.2152209

Andreas Mense

FAU Erlangen-Nürnberg ( email )

Findelgasse 7
Nürnberg, 90402
Germany

Konstantin A. Kholodilin (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

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