The Impact of Environmental Pollution on Property Values in Your Area

Pollution is a worldwide increasing problem that not only affects our health but also has a serious effect on one of the biggest investments that we make in our lifetime and that is real estate. 

In fact, researchers claimed that approximately 7 million people die annually as a result of pollution (Source: World Health Organization, 2024).

Accordingly, homes would become unsellable, as polluted air, water, or soil causes diminished value in the particular neighborhood.

Real estate investors should be apprehensive about this problem because it has a direct effect on the prices of various properties.

You may now turn your focus to this article that revolves around what are the potential ramifications of environmental pollution on real estate assets in the market.

Air Quality and Real Estate Prices

In recent years, the role of environmental considerations in the analysis of real estate has increased tremendously. 

Among these, air quality has arguably developed into one of the most crucial factors for the evaluation of property and its demand. 

The lands located in regions with appreciable atmospheres tend to have high prices and demand.

On the other hand, air quality risk areas have lower real estate prices and a sluggish turn in markets. 

Even in the research carried out by the National Bureau of Economic Research, it’s found that 10% betterment in the quality of the air can create a rise of 4% in the housing market. 

For instance, in cities such as York Cabin and Vancouver where there is a clean atmosphere, houses, and other properties occupy the higher end of the markets.

On the contrary, polluted regions such as Delhi and Beijing face issues in attracting investments in properties. 

That’s how air quality is valued significantly more in real estate as more and more people are becoming aware of the health risks and are becoming political environmentalists. 

Take a look at the image below representing the cities with the worst air quality around the world.

Water Contamination and Market Value

When evaluating the amenities of a property, we mostly take into consideration the layout design, the geography, and the extent of the exterior. 

It might come as a surprise if told that the cleanliness of frothy water has its orbiting role as well. 

It doesn’t matter where you position your assets – be it near a lake or even a swimming pool, the cleanliness of the area and the water can potentially enhance the property’s overall worth.

On the other hand, the presence of toxic pollutants in the water can have the opposite impact – lower real estate prices.

As a conclusion, be it having a clean pool or living close to a clean lake, taking care of cleanliness can solve the majority of the miscellaneous issues and result in higher property rates.

AFFF Contamination: A Growing Concern

The use of AFFF has become a major source of contamination and unfortunately, its prevalence raises concerns about the diminishing property value of the area. 

Aqueous Film Forming Foam (AFF) is a compound that is extensively used in military bases and airports.

It contains a group of chemicals called PFAS, which are more commonly referred to as ‘forever chemicals’ as these can take years to decompose once built up in water and soil.

Such compounds are hazardous not only to health but also to properties located close enough to AFFF spills as they can lead to diminishing the value of the land.

With growing awareness of such dangers, an AFFF lawsuit by the Navy has also brought more attention to the issue, especially since military sites have been major locations for its use.

These all factors only indicate to the matter that if there is a chance of the presence of AFFF nearby, the buyers are likely to lower their price or refuse the deal altogether.

Do You Know?
Less than 1% of global land area has safe air pollution levels.

Soil Contamination Impact

Following the contamination of air and water, the presence of contaminants in the soil is also a major factor that can lead to a fall in the value of your land. 

Industrial waste, pesticides, and leaking underground tanks not only render your land grain less valuable but also pollute the soil around your property.

If your property is surrounded by old factories, brownfields, or landfills that are polluted, potential customers may be concerned about the health risks and this will adversely affect the sale of your property or lower its worth. 

So by this account soil pollution is not just an issue impacting the ecology but it is a critical problem affecting the value of your land and the many minerals to it.

---