Case Study: Introduction
Opinions about wind turbines - and their effect on property prices - are a relatively new phenomenon in Ontario (since 2005). Most people have an opinion regarding wind turbines and their effect on themselves, their surroundings, and society. The main concerns are the safety and health impacts of wind turbines.
If a wind turbine were erected on a property, would the neighbouring properties have the same market value as without the wind turbine? Does a wind turbine cause an increase or decrease in property value? There may be endless questions from a potential buyer and/or seller when dealing with a property affected by a wind turbine. When considering property value, these questions are difficult to quantify; however, the overall impact of a wind turbine can be analyzed within the actions of an open real estate market.
This study endeavours to isolate any loss in property price caused by a wind turbine.
The construction and use of a wind turbine is an event over which a neighbouring property owner has no control. Each example in this study illustrates some type of ‘harm' or ‘injurious affection' that can be caused to a real property as a result of a wind turbine. The harm may be real or perceived and it may be different for each property and to each property seller and buyer.
This study analyzes specific examples that occurred within the open real estate market in order to isolate the impact on property value caused by a wind turbine.
CONCLUSIONS – Melancthon Property Purchases and Re-Sales
Market evidence suggests that ‘dwelling properties’ will be harmed or injured by the construction, use, and maintenance of wind turbines situated on properties located in the vicinity. Real or perceived nuisances resulting from wind turbines produces buyer resistance that results in price diminution.
TransAlta Melancthon 133 Wind Turbine Facility
|1 375557 6th Line, Amaranth||-48.27%|
|2 97121 4th Line, Melancthon||-58.56%|
|3 504059 Highway 89, Melancthon||-23.24%|
|4 582340 County Road 17, Melancthon||-26.66%|
|5 582328 County Road 17, Melancthon||-37.30%|
|Median Price Diminution||-37.30%|
|Average Price Diminution||-38.81%|
The erection of a wind turbine creates apprehension in the general public, which makes the property less desirable and thus diminishes the prices of neighbouring property. Continuing scientific uncertainty over the adverse health consequences of wind turbines only serves to perpetuate the debilitating effect of wind turbines on property prices.
By including the Transfer of Easement in Gross in the deed/transfer of the properties sold by Canadian Hydro Developers, Inc., it is reasonable to conclude that Canadian Hydro Developers, Inc. was fully aware of problems associated with…heat, sound, vibration, shadow, flickering of light, noise (including grey noise) or any other adverse effect or combination thereof resulting directly or indirectly from the operation of the Transferee's wind turbine facilities situated…within the Townships of Melancthon and Amaranth, in the County of Dufferin…’ and that the turbines …’may affect the living environment’…”.
The covenants imposed by Canadian Hydro Developers, Inc. and accepted by the five buyers suggest an official admission by Canadian Hydro Developers, Inc. that there are living environment issues with the result that there is a diminution in price as a result of wind turbines.
It is also reasonable to assume that a property that has a wind turbine erected on it will suffer a similar price diminution and will be injuriously affected.
CONCLUSIONS – Current Values, Property Purchases and Re-Sales
Market evidence suggests that ‘dwelling properties’ will be harmed or injured by the construction, use, and maintenance of wind turbines situated in the vicinity. Real or perceived nuisances resulting from wind turbines produces buyer resistance that results in price diminution.
Conclusion: Clear Creek, known as Frogmore-Cultus-Clear Creek, about 18 Wind Turbines
|1 1480 Lakeshore Road, Norfolk||-44.17%|
|2 71 Norfolk County Road 23, Norfolk||-55.18%|
|3 47 Concession Road A, Norfolk||-22.47%|
|4 43 Old Mill Road, Norfolk||-32.96%|
|5 1575 Lakeshore Road, Norfolk||-27.67%|
|6 1527 Lakeshore Road, Norfolk||-28.88%|
|7 1921 Lakeshore Road, Norfolk||-38.48%|
None of the above properties had a Wind Turbine situated on its land.
The Wind Turbines were located in the neighbourhood.
However, it is reasonable to assume that a property that has a wind turbine erected on it will suffer a similar price diminution and will also be injuriously affected.