The Pricing of Power Lines: A Geospatial Approach to Measuring Residential Property Values

The valuation of power lines is a complex phenomenon. Using a sample of 5,455 vacant lots sold in Pickens County, South Carolina, we uncover substantive pricing discounts of 44.9% for properties adjacent to power lines, and a pricing discount of 17.9% for non-adjacent vacant properties up to 1,000 f...

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Bibliographic Details
Published in:The Journal of real estate research 2018-01, Vol.40 (1), p.121-154
Main Authors: Wyman, David, Mothorpe, Chris
Format: Article
Language:English
Subjects:
Discounts
Electric power lines
Housing
Magnetic fields
Marginal pricing
Polls & surveys
Power
Prices
Property values
Proximity
Real estate financing
Real estate sales
Studies
Valuation
Visibility
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Summary:The valuation of power lines is a complex phenomenon. Using a sample of 5,455 vacant lots sold in Pickens County, South Carolina, we uncover substantive pricing discounts of 44.9% for properties adjacent to power lines, and a pricing discount of 17.9% for non-adjacent vacant properties up to 1,000 feet away from the power lines. Applying four different geospatial approaches—buffer zones, straight line distance, viewshed analysis, and tower visibility—we find that high-voltage transmission line (HVTL) pricing models should account for both proximity and visibility to reflect location-specific variations in pricing.
ISSN:0896-5803
2691-1175
DOI:10.1080/10835547.2018.12091490