The impact of proximity to cell
phone towers on residential
property values
Olga Filippova and Michael Rehm
Department of Property, The University of Auckland, Auckland, New Zealand
Abstract
Purpose – This paper aims to determine if proximity to cell phone towers influences house prices
with a focus on isolating the impact of tower aesthetics on nearby property values.
Design/methodology/approach – Sales transaction data from the Auckland Region during
2005-2007 were analysed using a series of hedonic models testing various proximity specifications
across two populations of cell towers: residential-only and global (all towers).
Findings – The study could not establish a relationship between cell towers and house prices with
the exception of armed monopole towers located in residential areas due to such towers’ acute visual
disamenity.
Practical implications – The study’s findings can be directly applied to residential valuation
practice and can assist government regulators and telecommunication companies in siting new cell
towers.
Originality/value – This research provides three distinct methodological improvements:
unconventional geocoding that improves spatial accuracy, separate analysis of towers in residential
areas that enhances internal validity and inclusion of tower mast data to isolate the impact of tower
aesthetics.
Keywords Residential house prices, Cell towers, Electromagnetic radio frequency, Housing markets,
Environmental stigma, Hedonic pricing model, Mobile communication systems, New Zealand
Paper type Research paper
Introduction
New Zealand mobile phone service was launched in 1987. Nearly 20 years later,
86 percent of New Zealand households had access to mobile phones (Statistics
New Zealand, 2007). With such high volume of cell phone users, there is a need for more
cell phone base stations. As shown in Figure 1, at the end of 2008 there were
approximately 1,200 nationwide sites erected by one of the main providers, which
represents roughly half of the country’s cell towers. This rapid rise in the number of cell
towers corresponds with the exponential increase in the use of mobile communications.
In order to provide uninterrupted coverage, towers have been and continue to be
erected in residential areas. Despite the public’s desire for expanded service, the growth
of cell phone networks is often a source of neighbourhood opposition. Residents living in
the vicinity of a cell phone tower typically cite health and safety concerns associated
with electromagnetic fields (Wikle, 2002; Rorer, 2004). This combined with aesthetic
concerns lead to claims of reduced property values (Long, 2000; Wikle, 2002; Rorer, 2004;
Nagle, 2009). In an attempt to delay or prevent the siting of cell phone towers in
residential areas and near educational facilities, the opposing residents form organised
not in my backyard (NIMBY) groups. A high-profile campaign from one such group
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1753-8270.htm
IJHMA
4,3
244
Received 13 November 2010
Revised 15 March 2011
Accepted 29 March 2011
International Journal of Housing
Markets and Analysis
Vol. 4 No. 3, 2011
pp. 244-267
q Emerald Group Publishing Limited
1753-8270
DOI 10.1108/17538271111153022
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