A new study commissioned by the International Gas Association of America (IGAA) and conducted by Integra Realty Resource (IRR) discovered that there is no connection between the development and operation of energy pipelines and lowered property values. Property values that were closer to pipelines did not suffer from lower prices compared to properties that were further away; there were no distinguishing sales adjustment between lots of varying proximity.
The Details of the Integra Realty Resource Study
IRR was able to study approximately 200 real estate transactions which occurred throughout the states of Mississippi, Virginia, New Jersey, and Ohio. The study pulled from transactional data both close to pipelines and far away from them, in an effort to see whether prices had dropped in areas that were close to pipelines. The IRR study found that home sales were entirely unaffected by proximity to natural energy pipelines. This has been an argument and concern for some time regarding the development of new pipelines close to residential areas.
Part of this, it’s believed, is that new pipelines and old pipelines are both considered to be equally safe. There are very few concerns regarding proximity to pipelines, at least not enough to affect property values or the purchase and sale of homes in these areas. Thus, home buyers can purchase properties that are close to both new and old pipelines (and current pipeline developments) without any fear that their properties could depreciate.
Other Concerns from the Integra Study
In addition to looking at the property values, the Integra study also looked at whether it was more difficult to purchase homes in areas that had pipelines, or whether it took longer sell them. The Integra study did not find that mortgages were any more difficult to obtain in these areas, nor did it find that any unconventional methods of sale needed to be performed (such as short sales). The IRR study was able to use large amounts of data to dig deep into whether or not pipeline-proximal property sales differed in any way from property sales that were not in the area of any pipeline.
This isn’t the only study that has been completed regarding real estate values and pipelines. There was another study conducted in 2001 by INGAA that also found similar results; that the pipelines themselves had no impact regarding real estate values. It is not expected that they will have any impact in the future.
The only thing that can truly hurt property values around a pipeline is a large leak or spill. That’s where conscientious containment protocols and strategies come in. Keystone Containment offers a wide variety of oil spill containment solutions, from turn-key services to quality control and maintenance. Contact Keystone Containment today to learn about these product offerings and more.