The Property Value Impacts of Groundwater Contamination: Agricultural Runoff and Private Wells Quick Links

Abstract: 

There are few studies examining the impacts of groundwater quality on residential property values. Using a unique dataset of groundwater well tests, we link residential transactions to home-specific contamination levels and undertake a hedonic analysis of homes in Lake County, Florida; where groundwater pollution concerns stem primarily from agricultural runoff. We find that testing and contamination yield a 2% to 6% depreciation, an effect that diminishes after the situation is resolved. Focusing specifically on nitrogen-based contamination, we find prices decline mainly at concentrations above the regulatory health standard, suggesting up to a 15% deprecation at levels twice the standard.

https://en.wikipedia.org/wiki/List_of_major_springs_in_Florida

http://yosemite.epa.gov/EE/epa/eed.nsf/WPNumber/2015-05?opendocument

U.S. Environmental Protection Agency (EPA) www.EPA.gov National Center for Environmental Economics (NCEE) 

Working Paper Number: 2015-05; November 17, 2015
by Dennis Guignet, Rachel Northcutt, Patrick J. Walsh
Keywords: drinking water; groundwater; hedonic; nitrate; potable water; property value; water quality