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"Half a truth is often a great lie."
Benjamin Franklin
Impact On Property Values From Airport Expansion and Noise
Contrary to the rumor that an airport will improve property values - according to
the FAA, residential properties around commercial airports will decrease in value.
Booz-Allen & Hamilton Inc., “The Effect of Airport Noise on Housing Values: A Summary Report,” Office of Environmental and Energy Federal Aviation Administration, September 15, 1994. This is still the "Gold Standard" all property value reports are based on.
For higher valued homes, the report projected the average devaluation to be expected around a major airports is up to 18.6%. Today, this report is still the definitive property value study and is referenced in most airport noise and property devaluation reports and studies.
Building on the 1994 Booz-Allen & Hamilton study, the 1997 - Randall Bell Report, prepared the "The Impact of Airport Noise on Residential Real Estate" study for the Orange County Board of Supervisors, concluded with:
The market data from this preliminary study indicates the following:
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National and international airports impact the values on properties in close proximity.
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The impact on single-family residences located in proximity to an airport is consistently negative, as compared to otherwise similar properties not located near an airport.
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The impact on single family residences ranges from -15.1% to - 42.6%, and averages -27.4%. This does not include the costs of noise mitigation measures that individual homeowners may incur.
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The LAX office market enjoys outstanding transportation access and the improvements are comparable with other office buildings in the area; however, this market is distinct in that it is located under the final landing approach to an international airport. The rental rates for the LAX office market are from 19.1% to 43.3% lower than any other office market in the surrounding South Bay area. Combined with the effects of also having the highest vacancy rate of 38.1%, the negative net effects on value are further amplified. These figures do not include any special noise mitigation costs incurred by the property owners.
Chart from Dr. Randall Bell's Report
Additionally, a 1996 study funded by the Legislature of the State of Washington used a somewhat similar methodology and found that the proposed expansion of Seattle-Tacoma Airport would cost five nearby cities $500 million in property values and $22 million in real-estate tax revenue.
Why is this all important, CRQ is a small-plane, General Aviation Airport? This is important because, according to the airport authority, CRQ's classification changed from a General Aviation Basic Transportation Airport to a Commercial Service-Primary Airport sometime around 2002. With the runway extension and some other changes, the airport will finally become a commercial hub the county has intended.
