This study examines the influence of road noise on the prices of condominiums in Hamburg, Germany. On the basis of micro-level datasets capturing traffic-noise exposure, price discounts in the amount of 0.23% following a 1 dB(A) increase in road noise have been observed. The discounts calculated are, thus, significantly lower than average price discounts reported in previous studies, which were almost exclusively based on single-family homes. Using a nonlinear approach, we show that the discounts are not constant, but actually increase disproportionately. Even though it has been shown that noise coefficients can be biased if we do not control for other sources of noise, the effect of road noise on condominium prices in Hamburg is independent of whether or not a residential area is affected by other types of noise besides road noise. (A) Reprinted with permission from Elsevier.
Abstract