Notes
MIT CEEPR Working Paper 2026-06 by Florian Allroggen, R. John Hansman, Christopher R. Knittel, Jing Li, Xibo Wan, and Juju Wang estimating the causal effect of aviation noise on housing prices using quasi-experimental variation from FAA rollout of performance-based navigation (PBN) procedures and runway reconfigurations at three major U.S. airports. Using a difference-in-differences hedonic price model with high-resolution flight trajectory data and geocoded housing transactions, the study finds a one-decibel increase in annual day-night average sound level (DNL) reduces house prices by 0.6 to 1.0 percent. Results show distributional consequences by income and race, with implications for aviation and urban land-use policy. Funded by FAA Office of Environment and Energy through ASCENT, FAA Award Number 13-C-AJFE-MIT.