What a pipeline does to home values

Isolating the effect that proximity to a high-pressure natural gas pipeline has on nearby home values — using econometrics and a fully-integrated geographic information system.

SAMPLE

1,000+ home sales

SUBJECT

High-pressure gas line

METHODS

Hedonic model + GIS

The challenge

Homeowners near a pipeline often believe it depresses their property value — but proving it is another matter. Homes near the easement also differ in size, age and neighborhood, and those differences can masquerade as a pipeline effect. The question demanded that proximity be separated cleanly from everything else.

Our approach

Precise distances. Our GIS computed each home's true distance to the pipeline centerline, not a zip-code approximation.
Hedonic model. A regression held size, age, condition, lot and location constant, letting the distance term stand alone.
Robustness. Alternative specifications and distance bands confirmed the effect was stable, not an artifact.

Findings

Distance from pipeline	Estimated effect on value
Under 250 ft	−8.5%
250 – 750 ft	−4.2%
750 – 1,500 ft	−1.3%
Beyond 1,500 ft	no significant effect

The effect was real, measurable and sharply distance-dependent — largest at the easement and fading to statistical zero beyond roughly 1,500 feet. The result was documented to withstand cross-examination.

Figures are illustrative of the study's structure and results. Full model specification and data provenance available on request.