"Fracking Brings Steep Drops in Home Values in Some Neighborhoods"

A new peer-reviewed study published in the American Economic Review has found that Pennsylvania homes located in areas using well water saw home prices drop by an average of $30,1676 when shale gas drilling occurred within a distance of 1.5 kilometers. The study looked at property values over a 17-year period. Other key findings from the study:

  • A shale well located within one kilometer of a home reliant on well water was associated with a 13.9 percent average decrease in home value. The value decreases more when a home is closer to a shale gas well. The maximum decrease found was 16.5 percent.
  • In neighborhoods with a municipal water supply, rather than water wells, home values rose slightly after shale wells opened--but only when shale wells were out of view of the property. The study authors say that these results are driven by royalty payments (or expectations of royalties) associated with producing wells.

This study is consistent with previous research on how fracking impacts home values, and is more evidence for the continued need for better regulation of fracking and all of its harms.

About the Authors

Amy Mall

Senior Policy Analyst, Land & Wildlife program

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