Airport-Related Noise, Proximity, and Housing Prices in Atlanta
FRB of St. Louis Working Paper No. 2005-060C
35 Pages Posted: 9 Nov 2005
Date Written: July 2006
Using hedonic models, we analyze the effects of noise and proximity on housing prices in neighborhoods near Hartsfield-Jackson Atlanta International Airport during 1995-2002. We address complications caused by changes over time in the levels and geographic distribution of noise and by the fact that noise levels are measured only at the beginning and after the end of the sample period. Generally speaking, housing prices were affected positively by declining noise levels. After accounting for proximity, house characteristics, and demographic variables, houses in noisier areas sold for less than houses subjected to less noise. Comparing prices in 1995-1999 with 2000-2002, the noise discount is larger during the latter period. Proximity to the airport is related positively to housing prices.
Keywords: noise, airports, housing prices, hedonic pricing, proximity
JEL Classification: Q53, Q51, R31, L93
Suggested Citation: Suggested Citation