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New Study Shows Impact of Wind Farms on Home Values

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If you practice real estate near a wind farm, you should know:

wind farmWith the increasing methods of alternative energy American cities are seeking out and implementing, the U.S. Department of Energy’s (DOE) Lawrence Berkeley National Laboratory set out to study whether or not wind power facilities impact sales prices of homes.

Communities frequently worry about wind power facilities due to the large size, view obstructions and noise levels, but the Berkeley Lab released a report this week stating that “proximity to wind energy facilities does not have a pervasive or widespread adverse effect on the property values of nearby homes.” The research reviewed homes within 20 miles of 24 wind facilities across the country versus home sales between 1996 to 2007 in which time facilities were announced, constructed, completed and now operate.

Berkeley Lab consultant Ben Hoen said, “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. No matter how we looked at the data, the same result kept coming back – no evidence of widespread impacts.”

Although I’m not personally around a wind power facility (and haven’t seen one fully constructed in person yet), I find this quite surprising because of how insanely massive the individual pieces are, let alone an entire wind farm! Why do you think the data continually shows that facilities don’t impact sales prices despite noise and views?

Lani is the Chief Operating Officer at The American Genius - she has co-authored a book, co-founded BASHH and Austin Digital Jobs, and is a seasoned business writer and editorialist with a penchant for the irreverent.

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13 Comments

13 Comments

  1. Thomas Johnson

    December 4, 2009 at 2:20 am

    East Anglia style scientific method. The Kennedy’s on Martha’s Vineyard were surveyed about the effect of windmills on the value of the Kennedy compound. No windmills no effect on prices!

  2. clare

    December 4, 2009 at 4:33 am

    I don’t necessarily think the study was an accurate result, I can’t imagine that enough homes have been sold in local areas to make the study a comparable result. Also house prices have drastically gone up and down over the last couple of years so it is hard to measure the impact. It would be better to do this study in about 5 years time. Also with so many alternative means of power and mobile phone masts etc being erected it surely comes down to which would you prefer to live near and I would imagine people would want to live near a wind farm as a opposed to a power station or a mobile phone mast.

    • Lani Rosales

      December 4, 2009 at 10:52 am

      “The research reviewed homes within 20 miles of 24 wind facilities across the country versus home sales between 1996 to 2007 in which time facilities were announced, constructed, completed and now operate.”

      I wasn’t one of the researchers nor am I a scientist, but I can say for sure that home sales in a vast area for 11 years is pretty voluminous if you ask me and seems to be a pretty decent indicator. Realtors here do a “CMA” or Comparitive Market Analysis where agents compare recently sold, pending and active listings but I assure you that these reliable CMAs don’t compare every single home in a 20 mile radius nor do they go back 11 years combing MLS data. Just my two cents.

  3. BawldGuy

    December 4, 2009 at 9:59 am

    Hilarious, Thomas. Thanks for that.

    I think windmill farms have the same effect on prices as their impact on energy — zip, nada, not much.

  4. Mike McCann

    October 8, 2011 at 8:45 am

    I was one of the "peer reviewers" of that 2009 Study. I can tell you with certainty that the authors would not disclose the underlying data, and that their footnotes contain some references to data excluded nearest the turbines, and thus, the data from 5-10 mile away is irrelevant.

    Important to understand that the current generation of turbines are 400 to 500 feet tall, and have a "sweep" area of about 2 acres. This is a huge noise emitter as the blades sweep past the pole, making an amplitude modulation low frequency noise that can be "felt" at great distances. Many projects also cover land areas of 10,000 acres or more, and completely change the character of the rural communities they surround.

    For Berkeley study, about 3 dozen transactions within 1 mile of turbines were excluded because the prices "deviated too far from the mean", and at least 2 developer buyout of homes were excluded, despite the developers reselling at 38% & 80% losses (a little fact not disclosed in report). Of course, those sales carried restrictions to the new owners, that they could not complain about any noise or adverse impacts….which is what is happening within 2-3 miles in many project locations world wide.

    Berkeley study was funded by DOE who's policy is to encourage massive amounts of wind energy development.

    Heintzelman study from July 2011 is independent and academically objective, and finds value losses ranging beyond 30%, up to 3 miles from turbines. They used over 10,000 sales for a 9 year period, and also used a regression analysis, so it is at least as reliable as the Berkely methodology and data.

    There are many other impacts that, in my view, drive the real estate value declines near these projects. Not the least of which is the all too common sleep deprivation from the low frequency thumping, and people being driven from their homes by ongoing nuisance. Typical developer buy-outs include "gag order" terms, which prevent sellers from describing their experience or the terms of the buyout settlement. Projects in Ontario, Australia, UK, US exhibit home abandonment at an alarming rate…up to a dozen near a single project, and multiple abandonment's near many others.

    These details get buried in 7,500 sales, so "widespread" impacts is a matter of how one uses the word. The impacts are indeed widespread…world wide in fact. 5, 10, 20 miles from a given turbine…rare impacts. But less than 3 miles…very common. At the typically requested 1,000 foot setback….virtually a guarantee of negative impacts for occupants.

    If there is an epilogue yet, it would be that the Berkeley author, Ben Hoen, has now gone on record admitting that property values for homes nearby should be guaranteed by the wind developers. While he never said there are NO impacts, the wind industry prefers to tout his easily misunderstood comment about "no widespread" impacts.

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Austin

Austin tops the list of best places to buy a home

When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?

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Looking at the bigger picture

(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).

That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).

They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.

“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”

Click here to continue reading the list of the 12 best places to buy a home…

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Housing News

Average age of houses on the rise, so is it now better or worse to buy new?

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.

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aging housing inventory

The average home age is higher than ever

(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.

With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.

Prices of new homes on the rise

Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.

Click here to continue reading this story…

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Housing News

Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?

The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.

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Why Realtors are vulnerable to these rapid changes

(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.

Note: We’ll let you decide which company plays which role in the image above.

So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.

1. Zillow poaches top talent, Move/NAR sues

It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.

Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.

2. Two major media brands emerge

Last fall, the News Corp. acquisition of Move, Inc. was given the green light by the feds, and this month, Zillow finalized their acquisition of Trulia.

…Click here to continue reading this story…

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