CASE STUDY: Diminution in Value, Wind Turbine Analysis

Ben Lansink, AACI, P.App, MRICS|October 1, 2012
CanadaImpact on EconomyProperty Values

This case study investigates the impact of wind turbines on residential property values. The study looks at homes near the Melancthon Wind Facility located in Shelburne, Ontario, Canada. The project was built in two phases between 2006 and 2008. It consists of 133 GE 1.5 megawatt turbines with a total nameplate capacity of 200 megawatt. Excerpts of the report appear below. The full case study can be accessed by clicking on the link at the bottom of the page.


Opinions about wind turbines - and their effect on property prices - are a relatively new phenomenon in Ontario (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.


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.

Price diminution due to the Melancthon Wind Facility: 133 wind turbines

 1 ID 15797 – 375557 6th Line, Amaranth     -48.27%
 2 ID 15798 – 97121 4th Line, Melancthon  -58.56%
 3 ID 15799 – 504059 Highway 89, Melancthon    -23.24%
 4 ID 15800 – 582340 County Road 17, Melancthon    -26.66%
 5 ID 16339 – 582328 County Road 17, Melancthon  -37.30%
   Median Loss in Market Price  -37.30%
   Average Loss in Market Price  -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.


Case Study Wind Turbines Diminution Injurious Affection Oct 12

March 13, 2013

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