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

Posted: 15 May 2018

See all articles by Ermanno Affuso

Ermanno Affuso

University of South Alabama - Mitchell College of Business - Department of Economics and Finance

J. Reid Cummings

University of South Alabama

Huubinh Le

University of South Alabama

Date Written: May 2, 2018

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 visibillity 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.

Keywords: Hedonic Analysis; Housing Value; Land Planning; Public Planning; Spatial Econometrics; Urban Externalities; Wireless Tower Impacts

Suggested Citation

Affuso, Ermanno and Cummings, J. Reid and Le, Huubinh, Wireless Towers and Home Values: An Alternative Valuation Approach Using a Spatial Econometric Analysis (May 2, 2018). Journal of Real Estate Finance and Economics, Vol. 56, No. 4, 2018, Available at SSRN: https://ssrn.com/abstract=3172263

Ermanno Affuso (Contact Author)

University of South Alabama - Mitchell College of Business - Department of Economics and Finance ( email )

College of Business and Management Studies
Mobile, AL 36688
United States
(251) 460-7908 (Phone)
(251) 460-6734 (Fax)

J. Reid Cummings

University of South Alabama ( email )

307 University Blvd
Mobile, AL 36688
United States

HOME PAGE: http://www.southalabama.edu/mcob/realestate/

Huubinh Le

University of South Alabama ( email )

307 University Blvd
Mobile, AL 36688
United States

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