Figure 1. Willingness to Pay Estimates for Wells of Well Pads within X km of a Home
Figure 2. Price Gradient of Distance from Future/Current Well, Using Groundwater Dependent Areas
- We review 16 studies, with the majority of these studies conducting hedonic analysis to isolate the effect of unconventional oil and gas development on home prices.
- We find that the literature on the nearby housing market impacts of unconventional oil and gas development is relatively conclusive, meaning several high-quality studies report comparable findings.
- The studies show strong evidence for decreases in value, up to –$33,843, or –26.6 percent, for groundwater-dependent homes within 2 kilometers of a well pad, though this number varies by distance to a well or well pad and across studies.
- The studies also show strong evidence for smaller increases in housing value for those with piped water, up to $4,802, or 3.4 percent, depending on distance to a well or well pad and study.
- The only study able to account for mineral rights ownership directly finds a decrease of over –$60,000, or –35 percent, for homes without mineral rights.