How much does noise affect real estate prices?
Ever wonder how much better a house would be if it was in a better location or complain because of its proximity to a highway or main street? One interesting web site linked a study measuring how much an increase or decrease in average 24 hour day night sound levels, Ldn, affects the values of a home.
How Much Does Noise Affect Real Estate Prices? And How Do I Use This?
Sound levels are measured in decibels – a 3 decibel decrease means a cut in power of about half.
If an Airport moves next door, for example, jet engines are going to be north of 110 decibels.
Busy roadways, on the other hand, will have levels above 80 decibels.
It is well within the range of possibilities your house might (over the years) go from 45 or 55 Ldn to 80 Ldn or so – and now you can know how much that affects your bottom line (about .4% of value per 1 Ldn increase).
(The study used 55 Ldn as the median sound level at a house, about the level of a moderately busy suburban street. I did the equations as a power, so Value * .996^dB. Just know that it would be worse if it was Value * (1-.004*dB). So, take it with a grain of salt, but here you go!)
Living next to noise producing might mean more than just a monetary hit – it’s possible that higher sound levels cause cardiovascular risk, although studies of this type may just be measuring the type of people who move closer to busy streets!
Regardless, you now have half the story – approximately the amount that sound levels at a home will affect your bottom line. The old maxim holds true: “Location, Location, Location,” meaning you can change your house but you can’t move your land… noise affects real estate prices, and possibly a lot more?