HOW LONG DOES STIGMA IMPACT PROPERTY VALUES?

Judith Callanan and Chris Eves

AfRES from African Real Estate Society (AfRES)

Abstract: PURPOSE: The purpose of this paper is to determine the impact stigma has on property values and how long the stigma remains after the Not in My Back Yard (NIMBY) structure has been removed.DESIGN/METHODOLOGY/APPROACH: A quantitative analysis was undertaken, using a high voltage overhead transmission line (HVOTL) case study, to determine the effect on property values prior and post removal of the NIMBY structure. A repeat sales index in conjunction with the regression analysis determined the length of time, the stigma remained after removal of the NIMBY structure.FINDINGS: The results show that while the NIMBY is in place the impact on value is confined to those properties in close proximity. This is in contradiction to the findings, where on removal of the NIMBY the property values of the whole neighbourhood improve with the stigma remaining for 3 to 4 years.RESEARCH IMPLICATIONS: The implication of this research is that property Valuers need to change the way they take into account the presence of NIMBYs when valuing property with more emphasis, being placed on the neighbourhood rather than just the properties in close proximity. While the HVOTL was in place, only properties in close proximity were negatively affected, but on removal of the HVOTL the whole neighbourhood increased in value.ORIGINALITY/VALUE: Results expand on current knowledge by demonstrating the length of time the market takes to adjust to the removal of a NIMBY structure.

Keywords: High voltage transmission lines; impact on value; Nimby; stigma; Valuation (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2014-09-01
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Persistent link: https://EconPapers.repec.org/RePEc:afr:wpaper:afres2014_118

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