Share:


How do different noise pollution sources affect apartment prices?

    Radoslaw Trojanek Affiliation

Abstract

The paper analysed the impact of different noise sources on the residential market. This research used the hedonic method in OLS, SAR and SEM models based on the data set containing geocoded 16,247 apartments in Poznan. Strong evidence was found that noise is negatively linked with apartment prices. The apartment prices were the most significantly influenced by railway noise – an increase of 1 dB above 55 dB causes a 1.79% decrease in the value of an apartment. For other noise sources, aviation noise had the most significant impact with a 0.59% decrease in value per dB, tram noise with a 0.32% decrease and road noise with a 0.12% decrease. The influence of different noise levels on apartments is not constant and does not assume a linear relationship. For road noise, noise below 60 dB and tram noise below 65 dB were statistically insignificant. This may indicate that these noise levels are acceptable and are compensated by better access to public roads or urban transport.

Keyword : noise pollution, housing prices, housing market

How to Cite
Trojanek, R. (2023). How do different noise pollution sources affect apartment prices?. International Journal of Strategic Property Management, 27(6), 351–361. https://doi.org/10.3846/ijspm.2023.20563
Published in Issue
Dec 18, 2023
Abstract Views
402
PDF Downloads
357
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Andersson, H., Jonsson, L., & Ögren, M. (2010). Property prices and exposure to multiple noise sources: hedonic regression with road and railway noise. Environmental and Resource Economics, 45(1), 73–89. https://doi.org/10.1007/s10640-009-9306-4

Anselin, L. (1998). GIS research infrastructure for spatial analysis of real estate markets. Journal of Housing Research, 9, 113–133. https://doi.org/10.1080/10835547.1998.12091930

Batóg, J., Foryś, I., & Konowalczuk, J. (2019). Airport noise compensation: real estate perspective. Journal of European Real Estate Research, 12, 250–266. https://doi.org/10.1108/JERER-02-2019-0002

Beimer, W., & Maennig, W. (2017). Noise effects and real estate prices: a simultaneous analysis of different noise sources. Transportation Research Part D: Transport and Environment, 54, 282–286. https://doi.org/10.1016/j.trd.2017.05.010

Bełej, M., Cellmer, R., Foryś, I., & Głuszak, M. (2023). Airports in the urban landscape: externalities, stigmatization and housing market. Land Use Policy, 126, 106540. https://doi.org/10.1016/j.landusepol.2023.106540

Blanco, J. C., & Flindell, I. (2011). Property prices in urban areas affected by road traffic noise. Applied Acoustics, 72(4), 133–141. https://doi.org/10.1016/j.apacoust.2010.11.004

Bowen, W. M., Mikelbank, B. A., & Prestegaard, D. M. (2001). Theoretical and empirical considerations regarding space in hedonic housing price model applications. Growth and Change, 32(4), 466–490. https://doi.org/10.1111/0017-4815.00171

Brandt, S., & Maennig, W. (2011). Road noise exposure and residential property prices: evidence from Hamburg. Transportation Research Part D: Transport and Environment, 16(1), 23–30. https://doi.org/10.1016/j.trd.2010.07.008

Breidenbach, P., Cohen, J., & Schaffner, S. (2022). Continuation of air services at Berlin-Tegel and its effects on apartment rental prices. Real Estate Economics, 50(6), 1548–1575. https://doi.org/10.1111/1540-6229.12385

Can, A. (1992). Specification and estimation of hedonic housing price models. Regional Science and Urban Economics, 22(3), 453–474. https://doi.org/10.1016/0166-0462(92)90039-4

Cellmer, R. (2011). Spatial analysis of the effect of noise on the prices and value of residential real estates. Geomatics and Environmental Engineering, 5(4), 13–28.

Cellmer, R., Bełej, M., & Konowalczuk, J. (2019). Impact of a vicinity of airport on the prices of single-family houses with the use of geospatial analysis. ISPRS International Journal of Geo-Information, 8, 471. https://doi.org/10.3390/ijgi8110471

Chen, J.-H., Ong, C. F., Zheng, L., & Hsu, S.-C. (2017). Forecasting spatial dynamics of the housing market using support vector machine. International Journal of Strategic Property Management, 21(3), 273–283. https://doi.org/10.3846/1648715X.2016.1259190

Chen, S., Zhang, L., Huang, Y., Wilson, B., Mosey, G., & Deal, B. (2022). Spatial impacts of multimodal accessibility to green spaces on housing price in Cook County, Illinois. Urban Forestry and Urban Greening, 67, 127370. https://doi.org/10.1016/j.ufug.2021.127370

Cohen, J. P., Coughlin, C. C., Crews, J., & Ross, S. L. (2023). Longer term housing market effects of a major US airport closure. Real Estate Economics, 51, 990–1010. https://doi.org/10.1111/1540-6229.12433

Dave, K., Toner, J., & Chen, H. (2018). The effect of attribute representation methods on noise valuation: a choice experiment study. Transportation Research Part D: Transport and Environment, 62, 80–89. https://doi.org/10.1016/j.trd.2018.01.011

Dell’Anna, F., Bravi, M., & Bottero, M. (2022). Urban Green infrastructures: how much did they affect property prices in Singapore? Urban Forestry and Urban Greening, 68, 127475. https://doi.org/10.1016/j.ufug.2022.127475

Egbenta, I. R., Uchegbu, S. N., Ubani, E., & Akalemeaku, O. J. (2021). Effects of noise pollution on residential property value in Enugu Urban, Nigeria. SAGE Open, 11(3), 1–12. https://doi.org/10.1177/21582440211032167

Espey, M., & Lopez, H. (2000). The impact of airport noise and proximity on residential property values. Growth and Change, 31(3), 408–419. https://doi.org/10.1111/0017-4815.00135

European Environment Agency. (2014). Noise in Europe 2014 (EEA Report No. 10/2014). http://www.eea.europa.eu/publications/noise-in-europe-2014

Ferreira, F. A. F. (2016). Are you pleased with your neighborhood? A fuzzy cognitive mapping-based approach for measuring residential neighborhood satisfaction in urban communities. International Journal of Strategic Property Management, 20(2), 130–141. https://doi.org/10.3846/1648715X.2015.1121169

Florax, R. J. G. M., Folmer, H., & Rey, S. J. (2003). Specification searches in spatial econometrics: the relevance of Hendry’s methodology. Regional Science and Urban Economics, 33(5), 557–579. https://doi.org/10.1016/S0166-0462(03)00002-4

Franck, M., Eyckmans, J., De Jaeger, S., & Rousseau, S. (2015). Comparing the impact of road noise on property prices in two separated markets. Journal of Environmental Economics and Policy, 4(1), 15–44. https://doi.org/10.1080/21606544.2014.951399

Gillen, K., Thibodeau, T., & Wachter, S. (2001). Anisotropic autocorrelation in house prices. Journal of Real Estate Finance and Economics, 23(1), 5–30. https://doi.org/10.1023/A:1011140022948

Gnat, S., & Bas, M. (2014). Badanie wpływu imisji hałasu komunikacyjnego na ceny lokali mieszklanych. In S. Źróbek (Ed.), Analiza rynku i zarządzanie nieruchomościami. Analiza rynku i zarządzanie nieruchomościami. Towarzystwo Naukowe Nieruchomości.

Gu, T., Yuan, J., Li, L., Shao, Q., & Zheng, C. (2020). Demand for community-based care services and its influencing factors among the elderly in affordable housing communities: a case study in Nanjing City. BMC Health Services Research, 20(1), 1–14. https://doi.org/10.1186/s12913-020-5067-0

Hill, R., & Trojanek, R. (2022). An evaluation of competing methods for constructing house price indexes: the case of Warsaw. Land Use Policy, 120, 106226. https://doi.org/10.1016/j.landusepol.2022.106226

INSEE. (2018). Handbook of spatial analysis: theory and practical application with R (V. Loonis, Ed., Issue 1). INSEE-Eurostat.

Jones, K., & Rhodes, D. P. (2013). Aircraft noise, sleep disturbance and health effects: a review (ERCD Report No. 1208). Civil Aviation Authority, UK.

Kelejian, H. H., & Prucha, I. R. (2010). Specification and estimation of spatial autoregressive models with autoregressive and heteroskedastic disturbances. Journal of Econometrics, 157(1), 53–67. https://doi.org/10.1016/j.jeconom.2009.10.025

Kopsch, F. (2016). The cost of aircraft noise – does it differ from road noise? A meta-analysis. Journal of Air Transport Management, 57, 138–142. https://doi.org/10.1016/j.jairtraman.2016.05.011

Kuehnel, N., & Moeckel, R. (2020). Impact of simulation-based traffic noise on rent prices. Transportation Research Part D: Transport and Environment, 78, 102191. https://doi.org/10.1016/j.trd.2019.11.020

Lancaster, K. J. (1966). A new approach to consumer theory. Journal of Political Economy, 74(2), 132. https://doi.org/10.1086/259131

Lavandier, C., Sedoarisoa, N., Desponds, D., & Dalmas, L. (2016). A new indicator to measure the noise impact around airports: the Real Estate Tolerance Level (RETL) – case study around Charles de Gaulle Airport. Applied Acoustics, 110, 207–217. https://doi.org/10.1016/j.apacoust.2016.03.014

Lawton, R. N., & Fujiwara, D. (2016). Living with aircraft noise: airport proximity, aviation noise and subjective wellbeing in England. Transportation Research Part D: Transport and Environment, 42, 104–118. https://doi.org/10.1016/j.trd.2015.11.002

Le Boennec, R., & Salladarré, F. (2017). The impact of air pollution and noise on the real estate market. The case of the 2013 European Green Capital: Nantes, France. Ecological Economics, 138, 82–89. https://doi.org/10.1016/j.ecolecon.2017.03.030

LeSage, J., & Kelley Pace, R. (2009). Introduction to spatial econometrics. Chapman and Hall/CRC. https://doi.org/10.1201/9781420064254

Lindgren, S. (2021). A sound investment? Traffic noise mitigation and property values. Journal of Environmental Economics and Policy, 10(4), 428–445. https://doi.org/10.1080/21606544.2021.1911861

Łowicki, D., & Piotrowska, S. (2015). Monetary valuation of road noise. Residential property prices as an indicator of the acoustic climate quality. Ecological Indicators, 52, 472–479. https://doi.org/10.1016/j.ecolind.2015.01.002

Malpezzi, S. (2008). Hedonic pricing models: a selective and applied review. Housing Economics and Public Policy, 1999, 67–89. https://doi.org/10.1002/9780470690680.ch5

Morano, P., Tajani, F., Di Liddo, F., & Darò, M. (2021). Economic evaluation of the indoor environmental quality of buildings: the noise pollution effects on housing prices in the city of Bari (Italy). Buildings, 11(5), 213. https://doi.org/10.3390/buildings11050213

Nelson, J. P. (1979). Airport noise, location rent, and the market for residential amenities. Journal of Environmental Economics and Management, 6(4), 320–331. https://doi.org/10.1016/0095-0696(79)90011-1

Ngo, T., Squires, G., McCord, M., & Lo, D. (2023). House prices, airport location proximity, air traffic volume and the COVID-19 effect. Regional Studies, Regional Science, 10(1), 418–438. https://doi.org/10.1080/21681376.2023.2186805

Postorino, M. N., & Mantecchini, L. (2016). A systematic approach to assess the effectiveness of airport noise mitigation strategies. Journal of Air Transport Management, 50, 71–82. https://doi.org/10.1016/j.jairtraman.2015.10.004

Poznan. (2012). Acoustic map of the city of Poznan. https://www.poznan.pl/mim/wos/-,p,11105,24629.html

Rosen, S. (1974). Hedonic prices and implicit markets: product differentiation in pure competition. Journal of Political Economy, 82(1), 34–55. https://doi.org/10.1086/260169

Rousseeuw, P. J., & Hubert, M. (2011). Robust statistics for outlier detection. WIREs Data Mining and Knowledge Discovery, 1(1), 73–79. https://doi.org/10.1002/widm.2

Schipper, Y., Rietveld, P., & Nijkamp, P. (2001). Environmental externalities in air transport markets. Journal of Air Transport Management, 7(3), 169–179. https://doi.org/10.1016/S0969-6997(01)00002-3

Su, X., & Tsai, C.-L. (2011). Outlier detection. WIREs Data Mining and Knowledge Discovery, 1(3), 131–146. https://doi.org/10.1007/0-387-25465-x_7

Szczepańska, A., Senetra, A., & Wasilewicz-Pszczółkowska, M. (2015). The effect of road traffic noise on the prices of residential property – a case study of the polish city of Olsztyn. Transportation Research Part D: Transport and Environment, 36, 167–177. https://doi.org/10.1016/j.trd.2015.02.011

Szopińska, K., Balawejder, M., & Warchoł, A. (2022). National legal regulations and location of noise barriers along the Polish highway. Transportation Research Part D: Transport and Environment, 109, 103359. https://doi.org/10.1016/j.trd.2022.103359

Tobler, W. R. (1970). A computer movie simulating urban growth in the Detroit region. Economic Geography, 46, 234–240. https://doi.org/10.2307/143141

Trojanek, R. (2021). Housing price cycles in Poland – the case of 18 provincial capital cities in 2000–2020. International Journal of Strategic Property Management, 25(4), 332–345. https://doi.org/https://doi.org/10.3846/ijspm.2021.14920

Trojanek, R., Gluszak, M., & Tanas, J. (2018). The effect of urban green spaces on house prices in Warsaw. International Journal of Strategic Property Management, 22(5), 358–371. https://doi.org/10.3846/ijspm.2018.5220

Trojanek, R., & Huderek-Glapska, S. (2018). Measuring the noise cost of aviation – the association between the Limited Use Area around Warsaw Chopin Airport and property values. Journal of Air Transport Management, 67, 103–114. https://doi.org/10.1016/j.jairtraman.2017.12.002

Trojanek, R., Tanas, J., Raslanas, S., & Banaitis, A. (2017). The impact of aircraft noise on housing prices in Poznan. Sustainability, 9(11), 2088. https://doi.org/10.3390/su9112088

Tu, Y., Sun, H., & Yu, S.-M. (2007). Spatial autocorrelations and urban housing market segmentation. The Journal of Real Estate Finance and Economics, 34(3), 385–406. https://doi.org/10.1007/s11146-007-9015-0

von Graevenitz, K. (2018). The amenity cost of road noise. Journal of Environmental Economics and Management, 90, 1–22. https://doi.org/10.1016/j.jeem.2018.04.006

Wen, H., Gui, Z., Zhang, L., & Hui, E. C. M. (2020). An empirical study of the impact of vehicular traffic and floor level on property price. Habitat International, 97, 102132. https://doi.org/10.1016/j.habitatint.2020.102132

Winke, T. (2016). The impact of aircraft noise on apartment prices: a differences-in-differences hedonic approach for Frankfurt, Germany. Journal of Economic Geography, 101, lbw040. https://doi.org/10.1093/jeg/lbw040

Winson-Geideman, K., & Krause, A. (2016). Transformations in real estate research: the big data revolution. In 22nd Annual Pacific-Rim Real Estate Society Conference (pp. 1–10), Sunshine Coast, Queensland, Australia.

Zambrano-Monserrate, M. A., & Ruano, M. A. (2019). Does environmental noise affect housing rental prices in developing countries? Evidence from Ecuador. Land Use Policy, 87, 104059. https://doi.org/10.1016/j.landusepol.2019.104059

Zheng, X., Peng, W., & Hu, M. (2020). Airport noise and house prices: a quasi-experimental design study. Land Use Policy, 90, 104287. https://doi.org/10.1016/j.landusepol.2019.104287