Journal of Real Estate Research

In 2017, the German federal government enacted the Railroad Noise Protection Act to diminish noise from freight trains. This study assesses the legislature’s impact on residential property values through regional analysis of affected properties proximate to railway tracks and residences at a greater distance before and following the enactment of the national policy. The difference-in-difference analysis indicates that homes located near the tracks experience an increase in house prices ranging from 0.5 to 2.5%, depending on the time periods considered for the passing and implementation of the act. An assessment of heterogeneity demonstrates that the favorable impact of the Railroad Noise Protection Act intensifies as the distance to the tracks shortens. Moreover, individuals with the highest noise exposure, not just from railroads, benefit the most from the policy.