The Impact of Water Clarity on Home Prices in Northwest Wisconsin

Abstract

This study estimates the property value gains associated with improvements in water clarity on 20 Northern Wisconsin lakes. Using a two stage hedonic model applied to Wisconsin DNR water studies and sales data on over 300 homes obtained from Zillow.com we estimate that a 3 foot improvement in water clarity would produce a 9 - 16% improvement in the market price of an average property on lakes with the lowest clarity.