Airport-related noise, proximity, and housing prices in Atlanta

"Using hedonic pricing models, we focus on the effects of proximity and noise on housing prices in neighborhoods near Hartsfield-Jackson Atlanta International Airport. We find that proximity to the Atlanta airport is related positively to housing prices and that airport-related noise is associated with lower prices. Relative to this latter result, estimates are generated showing evidence of a shrinking noise discount between 1995 and 2002. An important question is whether this result reflects a reduced effect of a given noise level on house prices or declining noise levels in the areas subject to relatively more noise. One explanation is that soundproofing of houses in noisy areas has increased their values. A lack of data, however, prevents definitive statements concerning the importance of soundproofing. A second explanation is that the trend reflects the limitations of the underlying noise contours. Over time, houses in the neighborhoods near the airport have been subjected to less airport-related noise. Evidence is presented consistent with this explanation"--Federal Reserve Bank of St. Louis web site.