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Aiden Reams

Study: Wind Projects Have No Long-Term Effect on Property Values

As the use of wind energy and other renewables continues to increase, a December 2023 study indicates that there is no long-term negative effect on property values of living near wind turbine sites, while in rural communities experience no significant impact at all.  


Researchers from the University of Connecticut, American University, and the Berkeley National Laboratory conducted the study of the impact of land-based wind turbine projects on nearby property values. The study, "Commercial Wind Turbines and Residential Home Values: New Evidence from the Universe of Land-Based Wind Projects in the United States," analyzed residential property transactions from 2005 to 2020, focusing on communities with populations exceeding 250,000.


The researchers found that homes within a mile of a project site experienced a significant drop in property values immediately following the project announcement, with an average decline of 15% two years post-announcement. These values remained depressed until the wind turbines became operational. After five years of operation, property values generally returned to their original levels, showing no statistically significant differences, meaning that there was no meaningful, measurable difference.


Homes located between one and two miles from a project site saw similar results with a smaller average decline of about 6% two years after the announcement. Importantly, there were no significant changes in property values for homes situated more than two miles from project sites or in non-urban and rural communities.


Wind turbines accounted for more than 10% of all electric capacity in the United States in 2023, according to the U.S. Energy Information Administration and this figure is rapidly increasing. In fact, wind power provides almost half of the total generation from renewable sources, topping hydropower and solar. While renewables provided about 21% of U.S. electric generation in 2023, fossil fuels continue to be the main source, providing 60% of generation.


Homeowners are understandably concerned about the potential impact of wind projects on their property values due to this expansion. However, the research indicates that while there is a short-term decline, there is no long-term negative effect of living near wind turbine sites. Those in rural communities experience no significant impact at all.


Moreover, wind turbine projects can benefit local governments and homeowners. Local governments receive income through property tax payments and payments in lieu of taxes from wind turbine developers. They can also offer temporary tax abatements to homeowners living close to these projects until the turbines are operational and property values stabilize. Developers can compensate homeowners directly, allowing local governments to retain the increased tax revenue.


This study provides valuable insights for policymakers, community members, and non-profit organizers, reassuring them of the minimal long-term impact on property values while highlighting the potential economic benefits of wind turbine projects.

 

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