Lots located next to power lines tend to sell for a whopping 45 percent less than similar lots further away from high-voltage transmission lines, according to a new study in the Journal of Real Estate Research. Lots that are non-adjacent to power lines but are located within 1,000 feet of them often sell at a discount of 18 percent, researchers Chris Mothorpe and David Wyman, the authors of the study, found.
The study focused on the value of vacant land, eliminating other factors that could also influence price, such as home style and square footage. The researchers say land typically represents 20 percent of a home’s overall value. Therefore, the 45 percent decrease in land value would translate to a drop in total property value of around 9 percent, according to the study.