S
ilence is a valuable commodity for homeowners, and a new study by the National Bureau of Academic Research confirms that quieting a highway can boost nearby property values. The researchers analyzed almost 600,000 Florida homes and found that installing sound barriers along highways produces lasting price gains. Homes within roughly 1,000 feet of a barrier rose about 6.8 % over five years compared with similar properties farther away; the benefit tapered off with distance and disappeared beyond about 400 m. The steepest gains were for those closest to the noise buffers.
The analysis also revealed how sensitive buyers are to traffic noise. The authors estimate that property values climb by nearly 1 % for every decibel of road noise reduced. “Buyers are willing to pay a substantial premium for each decibel of noise reduction,” said co‑author Enrico Moretti of UC Berkeley. To isolate noise effects, the team compared homes near highways with those at least 1,600 ft away, where traffic sound is negligible, while controlling for air quality, visual impact, schools, crime, and neighborhood upkeep. They concluded that traffic noise depresses U.S. residential values by roughly $110 billion.
Using a difference‑in‑differences approach, the researchers tracked price trends before and after barrier construction while matching properties on key characteristics. They found that the price uplift for the nearest homes materialized quickly, within the first year, and remained above the market average for the entire five‑year window.
Looking forward, the study modeled a future where all vehicles are electric. Quieter engines alone could lift national home values by more than $77 billion. In regions already embracing electric vehicles, the benefit is already visible. Santa Clara County, California, the nation’s EV leader, recorded an estimated $264 million increase in property values in 2023 linked to quieter streets.
These findings underscore that a simple investment in sound barriers can pay off for homeowners and that a shift to electric vehicles could recover a substantial portion of the noise‑related loss in property values.
