Do Wind Projects Adversely Affect Proximate Residential Property Values?
The most basic law of economics is that things are valued based on the “Law of Supply and Demand.” It is exceedingly obvious, all things being equal, that many people (due to view, sound, flicker, etc) would choose NOT to buy a home where there are wind turbines close by. (Whether they are right or wrong in their reasons is irrelevant.)
These beliefs would reduce demand, which clearly would have some negative impact on the price of such a property. Any report that concludes that there are zero negative property value effects related to wind projects simply can not be considered seriously. The only real question is how much of an impact?
This list is intended to identify just some of the more objective studies and commentary about the adverse effects of wind energy projects on home values near wind projects.
1 - Here are some more detailed professional analyses about wind project effects on property values:
A 2011 study Values in the Wind: A Hedonic Analysis of Wind Power Facilities by Clarkson economics professor, Dr. Martin Heintzelman [PDF].
A 2011 Study by appraiser Michael McCann on property value impacts in Cape Vincent, New York [PDF].
A 2011 Report by appraiser Michael McCann on property value impacts in Brewster, Massachusetts [PDF].
Testimony of appraiser Michael McCann on property value impacts in Adams County, Illinois [PDF download].
A study done by Metropolitan Appraisal, regarding the Forward Wind Project (Wisconsin).
“A Wind Turbine Impact Study” by appraisers: Appraisal Group One, and a later version.
A valuable report: “Impact of Wind Turbines on Market Value of Texas Rural Land” by Gardner Appraisal Group [PDF download].
“Living with the impact of windmills” presentation by Real Estate broker Chris Luxemburger, is an analysis of some 600 sales over a three year period.
Testimony of Maturen & Associates, Real Estate Appraisers, concerning the effects of wind projects on home values.
In addition to being an excellent noise an health effects report, this document has a twenty page appendix on property values.
“Wind Power Siting Issues: Overview” (by energy expert Tom Hewson): cites several studies.
2 - These are some other analyses and commentary about wind project effects on property values:
Despite the wind energy proponent’s continued claims that their projects have no adverse effects on property values, Iberdrola officially told this NNY community that they would not construct a project there if they were required to compensate land owners for property value losses. Most people would see that as being very hypocritical.
In my view this brings up a KEY point. Wind developers often get approval based on specious claims (regarding jobs created, CO2 saved, etc.). They get away with this as there is no real penalty for exaggerations or stretching the truth. One of the best ways to counter this is to require that all these claims be legally guaranteed, in writing. Just like what happened in the above case, you will see an immediate back-tracking. This will reveal to citizens the accuracy and sincerity of the developer’s assertions.
“A new slant on wind projects” offers a very helpful idea as to put some of the economic benefits of wind projects into perspective.
This site has a fine collection of property value articles.
“Property Values decrease by 40% if view of wind turbines” is an analysis of a real estate broker on turbine impacts on residential values.
An excellent discussion by the Wisconsin Realtor Association about the adverse effects of wind development.
An analysis by an Illinois Realtor about effects of wind projects.
A survey by a Wyoming Realtor concluded that properties nearby a wind project were virtually unmarketable.
“Property values blowing in the wind” is a report done by a local Realtor about wind project effects in her area of northern NY.
See here and here where two Realtors make formal testimony about the effects of wind turbines on property values.
See “Landowners say Turbines have Hurt their Property Values.”
“How Industrial Wind Projects Affect Property Values” is a worthwhile commentary by Chuck Ebbing.
A nice presentation “Turbine Effects on View Shed” by engineer Chuck Ebbing.
Some good observations and references on this topic, from Save Western NY.
A newspaper article: “Critics say wind turbines hurt land values.”
“Wind turbine homes threat” is a news report.
“I predict a series of rural ghettos of abandoned, unmaintained homes” says an experienced appraiser.
The Better Plan website has a good example of a real estate problem, plus some good recommendations.
Here is a good news story about homeowners holding out for the wind developers to buy their property — and succeeding very well.
This article says: “Horizon, opponents debate effects on property”.
“U.S. wrestling with property values and setbacks for its wind turbines” touches on several related matters.
This UK site site lists several other sources regarding property values.
“Giant blades are slicing home prices” an article about experiences in England.
“An Ill Wind Blowing” is a story about an English family’s experiences with a wind project depreciating their home value.
“Windfarm Blows House Value Away” is a story about another English family’s experiences with a wind project depreciating their home value.
“Wind farm property sells at sheriff’s sale.”
3 - This is specifically directed at landowners who are considering signing a wind lease:
“Know The Facts BEFORE You Sign” prepared by the Informed Farmers Coalition.
4 - Here are some sample Property Guarantee Agreements:
An explanation of the fine Property Value Agreement created in Hammond, NY, and a later version.
This real property value protection plan agreement was drafted by Illinois lawyers.
DeKalb County (Illinois) Property Value Guarantee Agreement. Some good commentary on the DeKalb Property Value Guarantee.
Property Value Guarantee Agreement from Adams County, Illinois.
This is the “Fenner, NY: Canastota Wind Power LLC: Property Value Assurance Plan”.
This article about Denmark’s public policy regarding loss of value to real property due to wind turbines says:
“An erector of a wind turbine has a duty to pay compensation for loss of value.”
5 - These are some critiques of the Hoen/Wiser report:
“Wind Farms, Residential Property Values and Rubber Rulers” - is commentary by appraiser Albert Wilson
“Critique of The Impact of Wind Power Projects on Residential Property Values in the United States: A Multi-Site Hedonic Analysis” by Wayne Gulden
“DOE study says wind farms don’t affect property values, but...” is a report by The Acoustical Ecology Institute.
A detailed critique 1 by appraiser Mike McCann, and a second one about a later Hoen report critique 2.
“Turbine Effects on View Shed” are observations by engineer Chuck Ebbing (starts on page 20).
“False conclusions based on flawed real estate studies” are some fine commentaries here, here, and here by WindAction.
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A good critique of two earlier studies (similar to Hoen/Wiser) by Michael J. Miller, FCAS, MAAA.
6 - Some Other Options:
In my view we should be piggybacking on ideas currently being employed by environmental groups to stop hydrofracking. Here is an example: Sue Your Neighbor. Make sure to look at the part about an “anticipatory nuisance.” Constructive condemnation is another possibility, but appears to be a subset of the “anticipatory nuisance” legal definition.
Here is a relevant case where a Canadian homeowner sued to have his property assessment lowered due to nearby noise from a power station. He won the lawsuit and received a significant reduction.
If you know of other good material, or there are errors of omission or commission here, please email these to John
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Rev 4/22/12