top of page

Impact On Property Values From Airport Expansion and Noise 

Property Values

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:


  1. National and international airports impact the values on properties in close proximity.

  2. 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.

  3. 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.

  4. 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

Property Value Chart

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.

July 10, 2018:

   Carlsbad Median "Detached" home price including  June

   sales is now $1,049,000 or $44,000 more than the last

   reported Point Loma median property price.

As the real estate industry constantly states, all real estate values are local.  Also, as the FAA and Orange County property value reports state, as airport noise increases, property value will decrease.  See the above charts for factual information.


Additionally, in 2015, the FAA install NextGen at San Diego International Airport and Point Loma property values have been negatively impacted ever since.  The same is true for surrounding communities of major airports all around the world.

In 2015, San Diego International Airport (SAN) had 4,000 annual noise complaints, mostly for the Point Loma communities in the takeoff path.  BUT by the end of 2017, the annual noise complaints to SAN had grown to over 80,000.

Additionally, the noise complaints are now coming from a 14 mile radius of the airport.

Think what will happen when McClellan-Palomar Airport  (CRQ) expands to a full "Commercial Carrier Airport" with 1,000,000 commercial passengers, as is projected  in the San Diego County's new McClellan-Palomar Master Plan.

Carlsbad can look forward to the same property devaluations predicted by the FAA and Orange County Reports.  Look no further than Point Loma to see our future and the truth.


FYI - in 2017, CRQ had approximately 4,300 noise complaints. 

bottom of page