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

Author

Listed:
  • Ermanno Affuso

    () (University of South Alabama)

  • J. Reid Cummings

    () (University of South Alabama)

  • Huubinh Le

    () (University of South Alabama)

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 visibility 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.

Suggested Citation

  • Ermanno Affuso & J. Reid Cummings & Huubinh Le, 2018. "Wireless Towers and Home Values: An Alternative Valuation Approach Using a Spatial Econometric Analysis," The Journal of Real Estate Finance and Economics, Springer, vol. 56(4), pages 653-676, May.
    • Handle: RePEc:kap:jrefec:v:56:y:2018:i:4:d:10.1007_s11146-017-9600-9
    DOI: 10.1007/s11146-017-9600-9
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    References listed on IDEAS

    as
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    Cited by:

    1. Steven B. Caudill & Franklin G. Mixon, 2020. "Estimating Bargaining Power in Real Estate Pricing Models: Conceptual and Empirical Issues," Journal of Risk and Financial Management, MDPI, Open Access Journal, vol. 13(5), pages 1-1, May.

    More about this item

    Keywords

    C5; K32; Q51; R21; R32; R38; R58;

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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