Researchers from the UvA (University of Amsterdam) and the VU Amsterdam (Vrije Universiteit Amsterdam) were the first academics in the Netherlands to study how wind turbines and solar farms affect (prices on) the housing market. Their insights are important for optimal placement of wind turbines, informing homeowners and ensuring a fair energy transition.  

Greater effect than previously thought

For years, it was assumed internationally that wind turbines had little downward effect on house prices. But the research carried out by dr. Martijn Dröes (Amsterdam Business School of the University of Amsterdam) and prof. dr. Hans Koster (Vrije Universiteit Amsterdam) has corrected this prevailing view. The value of nearby homes may indeed drop due to the presence of these turbines. These results led to immediate social debate: questions were raised in the Dutch Lower House and the researchers were asked to draw up a report for parliament. Incidentally, it is important to note that the drop in house prices was not as significant as homeowners feared. The effect is measurable, but not as great as expected. Even so, the conclusions drawn by Martijn Dröes based on the findings are crystal clear: 'The transition to a sustainable economy is important, but it should not lead to unfair skewing in the distribution of the benefits and burdens of sustainability across society.'

A new standard reference 

In the wake of the research, the Dutch wind power industry association, the NWEA, now also concedes that the construction of wind turbines leads to a decline in the value of homes in the surrounding area. It has also led to policymakers and wind turbine operators becoming more cautious and careful in determining locations for turbines when there are homes nearby. In addition, the knowledge gained through the research is used as a standard reference, which other Dutch and international research institutions, insurance companies and banks can cite. Industry-focused educational institutions, such as the Amsterdam School of Real Estate, are also using the research, for example in lectures on sustainability and real estate. The impact of the study has even spread beyond the borders of the Netherlands. In the United States, for example, the results have been used to reassess the effect of wind turbines on the value of homes.

Method and researchers 

The research was carried out using data from the NVM, the largest association of real estate agents and appraisers in the Netherlands (Brainbay). Dr. Martijn Dröes and prof. dr. Hans Koster conducted the research, with Dröes acting as the lead researcher. So in this study, representatives from two Amsterdam universities worked closely together. Looking ahead, Dröes wants to continue working on this topic. The goal for the future is to better understand the distribution of energy production in terms of spatial planning, in order to more accurately identify the impact on the distribution of (housing) assets. This will lead to the emergence of increasingly reliable insights to ensure that the energy transition progresses as fairly as possible.

Want to know more?

Publications and reports

• M.I. Dröes en H.R.A. Koster: Renewable energy and negative externalities: the effect of wind turbines on house prices, in: Journal of Urban Economics (2016).

• M.I. Dröes en H.R.A. Koster: Wind turbines, solar farms, and house prices, in: Energy Policy (2021).

• M.I. Dröes en H.R.A. Koster: Windmolens, zonneparken en woningprijzen (NL); Commissioned by the Ministry of Economic Affairs and Climate, 2019.

Other sources

Column: Wind turbines and solar farms drive down house prices. Hans Koster and Martijn Dröes (2020, 20 september). The Centre for Economic Policy Research (CEPR).