Study Shows Small Wireless Communication Facilities Do Not Depreciate Residential Real Estate 

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Joint Venture Silicon Valley today announced the publication of Economic Impacts to Residential Real Estate from Small Wireless Facilities. The study found that, across a wide geographic area, there is no statistical evidence of negative valuation impacts from small wireless communication facilities (or “small cells”) sited close to residential real estate. 

The study also found some evidence that residential real estate valuations increase within 10 kilometers after construction of a small wireless facility. In cases where the study found a statistically significant negative impact, the impact was not economically significant. 

“This study effectively upends a long-standing myth in the real estate community,” said David Witkowski, executive director of the civic technology initiative at Joint Venture. “In fact, there is some evidence that residential real estate valuations increase when located within ten kilometers of a facility,” Witkowski added.  

“The pandemic pulled back the curtain on just how limiting and inequitable connectivity is for far too many people – even in Silicon Valley,” said Russell Hancock, president and CEO of Joint Venture. “Cellular broadband was a lifeline during quarantine, with distance learning and a workforce that required that link from home. Unfortunately for some, there are coverage gaps.” 

 The study examined the question as to whether small wireless facilities have an effect, either positive or negative, on the valuation of residential real estate. It also examined the question of whether or not a 20% reduction in property valuation—a belief held by some professionals in the real estate industry—appeared in the results. The study used a dataset of 1,734 small cell sites installed in the State of California over the time period from 2010  to 2020, and a dataset of 11,684,458 real estate transactions statewide over the same ten-year period. Dr. Ralph B. McLaughlin, Chief Economist and Senior Vice President of Analytics at Haus, conducted the economic analysis.