Wireless Towers and Home Values: An Alternative Valuation Approach Using a Spatial Econometric Analysis

Abstract

This is the first study to use an hedonic spatial autoregressive model to assess the impact of wireless communication towers on the value of residential properties. Using quantile analyses based on minimum distances between sold properties and visible and non-visible towers, we examine the relationship between property values and wireless tower proximity and visibillity within various specified radii for homes sold after tower construction. For properties located within 0.72 kilometers of the closest tower, results reveal significant social welfare costs with values declining 2.46% on average, and up to 9.78% for homes within tower visibility range compared to homes outside tower visibility range; in aggregate, properties within the 0.72-kilometer band lose over $24 million dollars.

Keywords: Hedonic Analysis; Housing Value; Land Planning; Public Planning; Spatial Econometrics; Urban Externalities; Wireless Tower Impacts