The Impact of Airport Noise on House Prices

Kaur, Kanwal Preet; Cardak, Buly; McAllister, Richard

doi:10.26181/615f82f719ffc

1184164_Kaur,KP_2021.pdf (1.7 MB)

The Impact of Airport Noise on House Prices

journal contribution

posted on 2021-10-07, 23:29 authored by Kanwal Preet Kaur, Buly CardakBuly Cardak, Richard McAllister

Using individual house sale data and the release of an airport noise contour map, the relationship between airport noise contours and house prices in Melbourne is studied. House prices are not related to noise contours but annual aircraft movements and distance from the runway are both identified as important determinants of the price of houses near the airport. Houses farther from the airport runway but with the same observable characteristics command a premium of up to 37 per cent which is likely attributable to a range of externalities from the nearby airport including airport noise. Results are robust to tests for time variation in airport disamenity values. The results suggest households use distance to the runway as a proxy for the effects of airport noise.

History

Publication Date

2021-07-29

Journal

Q Open

Volume

1

Issue

2

Article Number

qoab012

Pagination

21 (p. 1-21)

Publisher

Oxford University Press

ISSN

2633-9048

Rights Statement

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