| FACT
SHEET
Property Values
Studies
have been conducted since the 1950s on the effects of power
lines on property values. Until recently most studies have
focused on visual effects and associated affect on value.
More recent research has included Electric and Magnetic Fields
(EMFs) and their role in property values.
Research
on effects of overhead transmission lines on property values
has expanded over the past 20 years to include appraisal studies,
attitudinal studies, and statistical analysis. The conclusions
of these studies have varied widely, with some reporting no
effects, others finding small effects, and still others reporting
substantial effects.
The available literature summarizes two types of potential
adverse economic effects on property values when loss actually
occurs: (1) a possible decrease in value of the property;
and (2) an increase in the time required to sell property
thus causing an economic loss associated with increased marketing
time.
In
general, the following findings emerge from literature:
-
Transmission lines have a greater potential to reduce the
value of urban or residential properties over other types
of properties. Many open space properties are not affected
at all.
-
The overall property value impact for single-family residential
properties is generally cited as less than 10 percent, but
in some cases has been 15 percent or more.
-
Other factors (e.g., neighborhood, square footage, size,
view, and shape of lot) are much more likely to be major
determinants of the sales price of the property.
-
Effects are most likely to occur for properties crossed
by or immediately adjacent to the line.
- Effects
are generally greater for smaller parcels than for larger
parcels.
- Effects
are greatest immediately after construction but decrease
over time.
- Although
there is no clear consensus about impacts of EMF on humans,
there is enough concern over the issue that attitudes toward
this effect may impact property values.
The
majority of studies on property values and transmission lines
have been in urban or suburban areas. It is anticipated that
the construction of a 115 kV transmission line near or crossing
private property would result in a small decrease in single-family
residential property values. The more important factors are
the location and shape of the property and the neighborhood.
The largest impact is during and after construction, but this
effect is mitigated by time.
Source
Draft
Environmental Impact for the Ojo Caliente Proposed Transmission
Line
Other
Sources
Hamilton,
S. and Schwann, G. (1995) Do High Voltage Electric Transmission
Lines Affect Property Values? Land Economics, 71(4)
Charles J. Delaney and Douglas Timmons, High Voltage Power
Lines: Do They Affect Residential Property Value? Journal
of Real Estate Research. Volume: 7 Issue Number: 3 Year: 1992
Suggested
Links
Power
Lines and Property Values: The Good, the Bad, and the Ugly,
David R. Bolton, MAI, David R. Bolton, Inc. Austin, Texas,
Kent A. Sick Womack, McClish, Wall & Sick, P.C. Austin,
Texas published by The Southwestern Legal Foundation in the
Proceedings of the INSTITUTE ON PLANNING, ZONING AND EMINENT
DOMAIN, Municipal Legal Studies Center, Dallas, Texas, November
18-20, 1998; and The Urban Lawyer, The National Quarterly
on State and Local Government Law, Spring 1999, Volume 31,
Number 2.
The
Effects of Overhead Transmission Lines on Property Values:
A Review and Analysis of the Literature, Dr. Cynthia A.
Kroll, Thomas Priestley, Ph.d., Aicp.
Power
Lines, Visual Encumbrance and House Values: A Micro-spatial
Approach to Impact Measurement, Francois DesRosiers, JRER
Vol. 23 No.3-2002.
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