US study demonstrates wind farms have no effect on house prices

A major new report released by the US Department of Energy’s (DOE) Lawrence Berkeley National Laboratory evaluates one of those concerns, and finds that proximity to wind energy facilities does not have a pervasive or widespread adverse effect on the property values of nearby homes.

The new report, funded by the DOE, is based on site visits, data collection, and analysis of almost 7,500 single-family home sales, making it the most comprehensive and data-rich analysis to date on the potential impact of U.S. wind projects on residential property values.

“Neither the view of wind energy facilities nor the distance of the home to those facilities was found to have any consistent, measurable, and significant effect on the selling prices of nearby homes,” says report author Ben Hoen, a consultant to Berkeley Lab. “No matter how we looked at the data, the same result kept coming back - no evidence of widespread impacts.”

The team of researchers for the project collected data on homes situated within 10 miles of 24 existing wind facilities in nine different US states; the closest home was 800 feet from a wind facility. Each home in the sample was visited to collect important on-site information such as whether wind turbines were visible from the home. The home sales used in the study occurred between 1996 and 2007, spanning the period prior to the announcement of each wind energy facility to well after its construction and full-scale operation.

The analysis revealed that home sales prices are very sensitive to the overall quality of the scenic vista from a property, but that a view of a wind energy facility did not demonstrably impact sales prices. The Berkeley Lab researchers also did not find statistically observable differences in prices for homes located closer to wind facilities than those located further away, or for homes that sold after the announcement or construction of a wind energy facility when compared to those selling prior to announcement. Even for those homes located within a one-mile distance of a wind project, the researchers found no persuasive evidence of a property value impact.

“Although studies that have investigated residential sales prices near conventional power plants, high voltage transmission lines, and roads have found some property value impacts,” says co-author and San Diego State University Economics Department Chair Mark Thayer, “the same cannot be said for wind energy facilities, at least given our sample of transactions.“

The findings replicate studies conducted in the UK that have been unable to link wind farm developments to adverse effects on property prices.

Read the report