Just Environments, a joint program of the Kenan Institute for Ethics and the Nicholas Institute for Energy, Environment & Sustainability, recently published a study showing that concentrated animal feeding operations (CAFOs) in North Carolina decrease the value of nearby homes by 30% — raising questions about this unregulated industry’s impact on nearby communities.
Just Environments is the home of the Duke Environmental Justice Lab (or EJ Lab), which uses data analysis and quantitative research methodologies to examine the unequal distribution of negative environmental impacts, which disproportionately fall on low-income and minority communities. Just Environments director Kay Jowers, former Duke economics professor Christopher Timmins (now at the Wisconsin School of Business), and Duke environmental policy Ph.D. Yu Ma (now at Oak Ridge National Laboratory) authored the study, with students in EJ Lab providing data support.
Though a moratorium in place since 1997 limits new hog farms, North Carolina has seen a 9% increase in poultry production capacity since 2017, according to Environmental Working Group estimates. The activities of concentrated animal feeding operations, or CAFOs, can introduce nitrogen, pesticides, airborne particulates, and pervasive odors to nearby homeowners’ property and water supply.
Despite these contamination risks, farms are not required to obtain permits or to have their waste management systems inspected. Although there have been a large number of studies regarding the various impacts of CAFOs, there has been a lack of research regarding how they affect housing prices.
Published in Land Economics, Just Environments’ study examines the financial impacts of living near industry poultry and hog farms in North Carolina. Jowers and her team tracked real estate sales in 43 eastern North Carolina counties between 2010–2014. The research examined two factors: proximity to farms and drinking water sources.
After reviewing the sales of 45,000 homes, the study found that homes on well water and within three kilometers of a large poultry farm had a drop in value of up to 32%. Homes on municipal water near a poultry farm had a drop in value up to 30%. These findings suggest growing concerns among home buyers over contamination risks.
“Seeing an effect of 30% [reductions in housing prices due to nearby poultry farms] is a surprisingly big number. But if you go out and visit one of these places and smell the exposure, it’s really not that surprising.”
— Chris Timmins
The study was quickly picked up by The Charlotte Observer, who reported on these findings in an article that also cited the nuisance CAFOs pose to their neighbors — in addition to the reduction in property values they bring.
In their study, the Just Environments team acknowledged that the hog and poultry industries create jobs and economic growth in North Carolina — the state is now the third largest producer of hogs and pigs, and produces the most pounds of poultry in the country. However, the methods required for this large scale production also pose health and environmental challenges for North Carolina residents.
