Price Effects of Landfills on Residential Land Values

Abstract

There is debate over whether, and the extent to which, landfills affect the value of residential land. There is further debate over whether the adverse effects of landfill proximity on land values continue after a landfill closes. This paper is based on the largest number of vacant residential land sales ever evaluated to address the proximity of landfill to residential land values. Based on sales of more than 500 vacant residential tracts of land within 5.64 km of three landfills in the Minneapolis‐St. Paul, Minn, urban region, the writers found that land values rise with respect to distance away from landfills. The price effects are found even after landfills have closed. The writers conclude that landfills impose negative price effects on vacant residential land, but these effects vary with respect to the operational state of landfills. The writers offer implications for landfill operations and location.