Does Proximity To Churches Impact Property Value?

There are several factors that real estate investors need to consider when deciding to buy a home.

Without analyzing the market carefully and understanding how different external factors affect its growth and profitability, it is easy to make mistakes and lose money in the process. That is why much effort has gone into research to understand what accelerates and what stagnates the growth of a particular real estate market.

Although much research has gone into the significant factors that affect the value of a property, researchers have seemingly ignored many minor factors. An excellent example is how churches affect the value of properties around them.

This guide explores this topic a little deeper to provide meaningful insights into how property value is affected by proximity to churches.

The Effect of Churches on Property Value

Although churches do affect the value of a property, there are few critical studies on the subject. We will quickly go through three of these studies and see what conclusions they made in different countries.

1.     The Impact of Churches on Property Prices in Hamburg, Germany

One of the most plausible studies done was on how churches inform property values in Hamburg, Germany. According to this widely published study, property close to houses of worship saw a 4.6% increase in prices compared to other areas that didn’t have churches nearby.

In carrying out the study, researchers considered three main factors. These include:

  • How different religious denominations (Christian and Islamic) affected property value
  • What happens to the value of a church after deconsecration

The study concluded that the difference in impact between Christian churches and Mosques was subtle.

In general, properties located between 100-200 meters from a house of worship saw their prices increase by approximately 4.6%. Additionally, these prices remained constant even after the churches ere deconsecrated. There was not enough data to determine whether bell ringing in the church affected the value of nearby properties.

However, other studies have listed, among other factors, noise from church bells as negatively affecting property value. One such study reviewed Henderson, Nevada.

2.     The Impact of Church Bells on Property Prices in Henderson, Nevada

Although the German study could not find any significant correlation between property value and bell ringing in nearby churches, this one did.

This study, done by three scientists (Do, Wilbur and Short) reported that noise from church bells, traffic caused by the church, musical instruments, loudspeakers and long church hours slightly downgraded the value of properties nearby. The trio believed that churches harmed property values in general.

However, a subsequent study by Thomas M. Carroll, PhD, et al. in the same area drew different conclusions. The later study found that churches nearby had a positive effect on property value. This tendency is because people tended to view areas with churches as being safe with no crime issues.

Thomas et al. argued that the previous study yielded negative results because the distance from the church to surveyed properties was too limited (850 feet), thus presented a smaller sample size. Although they used a statistically limited sample size, Thomas et al. did not entirely dismiss the previous study. Instead, they viewed their contrasting findings as a possible reflection of how different communities respond to religious institutions.

They suggest that more studies must be carried out in different communities to draw more reliable conclusions. 

3.     Effect of Churches on Property Value in Uyo Metropolis, Nigeria

This third reference study, done by Okey Francis Nwanekezie and Kelechi Onyinye Oparaugo in Uyo, Nigeria, used four neighbourhoods that had churches nearby as their study areas.

The general conclusion from this study was that churches positively affected the value of residential properties in high-density neighbourhoods as opposed to medium density ones.

Bottom Line

Churches positively impact the value of properties nearby by a 4X% where the property is 100-200m from the church.

However, the impact differs based on several factors. For example, the impact a church has on nearby properties depends on the views of the surrounding community. Most Christians would not be willing to live next to a mosque and vice versa. Also, if most of the community members are not religious, the presence of a church might not impact where they choose to live.

However, to say that most people view churches as desirable amenities and would prefer living close to one is correct. Researchers need to conduct more studies on the subject to provide more in-depth results. Still, most of the reviews already done lean towards the positive as opposed to the negative impact of churches on property values.

At Buyer’s Agent Australia, we are here to help you find a professional agent to guide you through the home buying process and the best location in which to purchase a home or investment property. If you have any queries about the home buying process, our property experts are here to help you.

Contact us today to find out how we can help you to find your dream property in Australia!

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