Fracking for natural gas may negatively impact the value of homes near the drill sites, says a survey to be reported in The Journal of Real Estate Literature.
“Our surveys show a 5 to 15 percent reduction in bid value for homes located proximate to fracking scenarios,” said Ron Throupe, a professor at the University of Denver.
Throupe, University of Denver colleague Xue Mao, and Robert A. Simons of Cleveland State University arranged for telephone interviews of more than 550 homeowners in Houston, Texas, and the Alabama-Florida panhandle.
They were instructed to imagine that they were going to consider bidding on a house near where hydraulic fracturing or fracking was occurring.
Texans surveyed discounted their bids by about 6 percent. In Alabama-Florida, the bids were reduced about 15 percent.
The term “fracking” can influence public opinion, the researchers said.
The future of real estate values in areas where fracking occurs will likely be influenced by how comfortable homeowners become with the drilling industry, the researchers said.