The INGAA Foundation recently released a study conducted by Integra Realty Resources (IRR) that looked into whether proximity to a natural gas pipeline had any impact on both a landowner’s property value as well as a landowner’s ability to get insurance. The main conclusion was clear: there’s no significant impact to property values – or insurability – from closeness to a natural gas pipeline. IRR selected geographically diverse areas for a comparative analysis based on similar influential characteristics, such as price, surrounding land, and structure. In the study, a small community near York, Pennsylvania was included with surrounding towns and cities in neighboring states.
Below is a list of the facts presented by the IRR:
- There is no measurable impact on the sales price of properties located along or in proximity to a natural gas pipeline versus properties which are not located along or in proximity to the same pipeline.
- Neither the size nor the age of a natural gas pipeline affects a property’s sale price.
- There is no impact on demand for properties located along natural gas pipeline easements nor is development in areas with natural gas pipelines hindered.
- Natural gas pipelines do not affect the property value of any particular type of residence any more or less than another type of residence.
- The sales frequency of homes “on” a pipeline is consistent with those “off” a pipeline indicating that the presence of a pipeline does not inhibit sales.
- Buyers purchasing homes along pipeline easements in each area were able to obtain conventional, Federal Housing Administration (FHA), and Veterans Affairs (VA) loans. This indicates that the presence of a natural gas pipeline had no effect on obtaining a mortgage.
- Insurance companies and agents interviewed said there was no indication that the presence of a natural gas pipeline would hinder a buyer’s ability to acquire property insurance. They also said there was no indication that premiums paid for insurance policies would increase because of the proximity to a natural gas pipeline.
- Based upon the geographically disparate areas studied, IRR concluded that it was highly likely that the results and conclusions of this report would apply to other markets across the country in which natural gas pipelines were located.
INGAA Foundation President and CEO Don Santa stated that “this report backs the findings of the INGAA Foundation’s previous, 2001 study of property values along pipeline routes – that underground natural gas transmission pipelines do not affect home values.” Through the overwhelming support from this study, it is clear that the facts are not changing. Pipelines do not and will not affect homeowner’s properties. Cannot simply argue with that.
To read the full study click here.