Thursday, March 24, 2016
The presence of an underground natural gas transmission pipeline does not affect the sales prices or value of residential properties, according to a new study, “Pipeline Impact to Property Value and Property Insurability,” conducted by Integra Realty Resources on behalf of the INGAA Foundation. “We undertook an independent study of residential properties in proximity to natural gas pipelines in the Southeast, Midwest, Mid-Atlantic, and Northeast United States,” said Integra Realty Resources senior managing director David Dominy. “By identifying residential neighborhoods that were bordered or bisected by at least one pipeline, we were able to isolate home sales of similar properties both on and off the pipelines. We then performed a direct comparison of the properties for normal valuation purposes. After comparison of approximately 200 sale transactions in five areas, we were able to determine there is no measurable negative impact in home values associated with the presence of a natural gas pipeline.”
Integra analyzed property sales in communities in four states—Ohio, New Jersey, Virginia, and Mississippi—and determined that “there was no measurable impact on the sales price of properties located along or in proximity to a natural gas pipeline versus properties which are not located along or in proximity to the same pipeline.” A fifth analysis, of a community in Pennsylvania, conducted by a separate appraisal company, also was included in the analysis.
The New York City-based market research, valuation, counseling, and consulting services company analyzed actual residential property sales data in each area, normalized by significant factors such as gross living area, size, age, and date of transaction, to derive adjustments used to account for differences in each area, both on and off pipeline easements, in like and similar conditions. Found was that buyers purchasing homes along pipeline easements in each area studied were able to obtain conventional Federal Housing Administration and Veterans Affairs loans. “This indicated that a presence of a natural gas pipeline had no effect on obtaining a mortgage,” the report said. Moreover, insurance companies and agents interviewed said there was no indication that the presence of a natural gas pipeline would hinder a buyer’s ability to acquire property insurance. They also said there was no indication that premiums paid for insurance policies would increase because of the presence of a pipeline.
“This report backs the findings of the INGAA Foundation’s previous 2001 study of property values along pipeline routes—that underground natural gas transmission pipelines do not affect home values,” said INGAA Foundation president and CEO Don Santa. “These findings might help property owners feel more confident about natural gas pipelines proposed in their communities. Pipelines provide enormous benefits to this nation, transporting natural gas safely and reliably to markets where it is used to heat homes and businesses, fuel power plants, and as a component to everyday materials like plastics and fertilizer.”
Integra analyzed property sales in communities in four states—Ohio, New Jersey, Virginia, and Mississippi—and determined that “there was no measurable impact on the sales price of properties located along or in proximity to a natural gas pipeline versus properties which are not located along or in proximity to the same pipeline.” A fifth analysis, of a community in Pennsylvania, conducted by a separate appraisal company, also was included in the analysis.
The New York City-based market research, valuation, counseling, and consulting services company analyzed actual residential property sales data in each area, normalized by significant factors such as gross living area, size, age, and date of transaction, to derive adjustments used to account for differences in each area, both on and off pipeline easements, in like and similar conditions. Found was that buyers purchasing homes along pipeline easements in each area studied were able to obtain conventional Federal Housing Administration and Veterans Affairs loans. “This indicated that a presence of a natural gas pipeline had no effect on obtaining a mortgage,” the report said. Moreover, insurance companies and agents interviewed said there was no indication that the presence of a natural gas pipeline would hinder a buyer’s ability to acquire property insurance. They also said there was no indication that premiums paid for insurance policies would increase because of the presence of a pipeline.
“This report backs the findings of the INGAA Foundation’s previous 2001 study of property values along pipeline routes—that underground natural gas transmission pipelines do not affect home values,” said INGAA Foundation president and CEO Don Santa. “These findings might help property owners feel more confident about natural gas pipelines proposed in their communities. Pipelines provide enormous benefits to this nation, transporting natural gas safely and reliably to markets where it is used to heat homes and businesses, fuel power plants, and as a component to everyday materials like plastics and fertilizer.”
