An underground natural gas pipeline’s presence does not affect residential properties’ sales prices or insurability, a study commissioned by INGAA Foundation Inc. concluded. The study by Integra Realty Resources Inc. for the Interstate Natural Gas Association of America’s foundation based the finding on analysis of property sales in Ohio, New Jersey, Virginia, and Mississippi.
A fifth analysis, of a community in Pennsylvania by a separate appraisal company, also was included, the foundation said on Feb. 29. “After comparison of approximately 200 sale transactions in five areas, we were able to determine there is no measurable negative impact in home values associated with the presence of a gas pipeline,” said David Dominy, IRR senior managing director.
The report’s major conclusions were:
• There is no measurable impact on the sales price of properties along or in proximity to a gas pipeline vs. properties not along or in proximity to the same pipeline.
• Neither the size nor the age of a gas pipeline affects a property’s sale price.
• There is no impact on demand for properties along gas pipeline easements, nor is development in areas with gas pipelines hindered.
• Gas pipelines do not affect the property value of any particular type of residence any more or less than another residential type.
• The sales frequency of homes “on” a pipeline is consistent with those “off” a pipeline, indicating that a pipeline’s presence does not inhibit sales.
• Buyers purchasing homes along pipeline easements in each area were able to obtain conventional, Federal Housing Administration and Veterans Affairs loans. This indicates that a gas pipeline’s presence had no effect on obtaining a mortgage, the study indicated.
• Insurance companies and agents interviewed said there was no indication that a gas pipeline’s presence would hinder a buyer’s ability to acquire property insurance. They also said there was no indication that insurance policy premiums would increase because of the pipeline’s proximity, the study said.
“Based upon the geographically disparate areas studied, IRR concluded that it was highly likely that the results and conclusions of this report would apply to other markets across the country in which gas pipelines were located,” the report said.
INGAA Foundation Pres. Donald F. Santa, who also is INGAA’s president, said the new report’s conclusions back findings of the foundation’s 2001 report on property values along gas pipeline routes.
“These findings might help property owners feel more confident about natural gas pipelines proposed in their communities,” Santa said.
Contact Nick Snow at nicks@pennwell.com.
