Valuing Neighbourhood Soundscapes in Urban Housing Markets: Evidence from Karachi

Abstract

Noise pollution in Karachi has already exceeded WHO-recommended environmental thresholds. It causes sleep disturbances, hearing impairment, stress, and anxiety. However, there is a lack of evidence on how these effects transferred into housing market. This study extends a conceptual framework and empirically explores household data on perceived neighbourhood soundscapes and self-reported housing values. We estimate hedonic pricing models to examine how the presence of natural and non-natural soundscapes around respondent’s residence affects housing values.  This study conducted a primary data survey of 507 respondents affiliated with the Institute of Business Administration (IBA), Karachi. Using hedonic regression results, this study is the first to confirm the effect of natural and non-natural soundscapes on housing values, along with structural, locational, and neighbourhood attributes. The results recommend designing and installing soundproof windows in homes and developing better urban planning and management policies to ensure a good quality of life in Karachi.