Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/270964 
Year of Publication: 
2023
Series/Report no.: 
Ruhr Economic Papers No. 1020
Publisher: 
RWI - Leibniz-Institut für Wirtschaftsforschung, Essen
Abstract: 
To evaluate the causal impact of noise exposure on housing prices, we exploit a sudden and massive reduction in flight traffic that occurred with the onset of the Covid-19 measures in Germany. Comparing locations differently exposed to pre-pandemic noise with a differencein-difference approach, we detect a 2.3% increase in prices for apartments that experienced a noise reduction. Disentangling temporal dynamics, we find a peak effect in mid-2021 (up to 6%), which does not yet allow a statement on whether effects remain persistently. In contrast to most evaluations showing that the erection of a disamenity affects prices negatively, we show that lifting the burden enables neighborhoods to catch up again immediately. The immediate catch-up contradicts a stickiness of housing prices regarding (temporal) local factors. The temporal pattern shows a clear peak of the effects during the pandemic, which potentially hints at information asymmetries since buyers may not know the non-pandemic noise level during the pandemic.
Subjects: 
Covid pandemic
aircraft noise
housing prices
hedonic function
JEL: 
O18
Q53
Persistent Identifier of the first edition: 
ISBN: 
978-3-96973-186-4
Document Type: 
Working Paper

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