Faster internet brings higher home prices

Published 8:46 pm Saturday, July 4, 2015

Does access to high-speed Internet affect home prices? According to The Wall Street Journal, the answer is yes.

“As the Internet becomes central to the way Americans work and live, the digital divide is taking on greater economic significance. Students without Internet access at home may struggle to keep up with school assignments. Towns with less access find themselves falling behind economically, researchers say. Now, the availability of speedy Internet service is starting to affect Americans’ biggest purchase: their homes,” the newspaper wrote.

“A nationwide study released recently by researchers at the University of Colorado and Carnegie Mellon University finds fiber-optic connections, the fastest type of high speed Internet available, can add $5,437 to the price of a $175,000 home — about as much as a fireplace, or half the value of a bathroom.”

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“University of Colorado researchers compared more than 520,000 home sales between 2011 and 2013 against government data on the type of Internet access available. It built on a 2013 study by the same researchers that found a similar effect on home prices in New York state. The researchers expanded their study with funding from The Fiber to the Home Council Americas, a group made up of municipalities, small telecom companies and others like Google Inc. that support the expansion of fiber networks.

“The results mirrored the findings of a 2014 study by the University of Wisconsin at Whitewater that found access to the Internet could add $11,815 to the value of a $439,000 vacation house in Door County, Wis.”

That data is important for real estate agents and potential homebuyers. But it’s also important for cities looking to attract and keep residents.

Brookhaven officials should look hard at the study. While a homebuyer looking to locate in Brookhaven may be satisfied with the current Internet offerings in the city, will that still be true in five years? In 10? As more cities and communities sign on with C Spire to install ultra-fast fiber Internet, Brookhaven may find itself losing residents to those places.

All other factors being equal, will people choose a city that offers fiber Internet over a city that doesn’t? In the future, the answer will be yes. Especially younger people whose digital lifestyles will soon require the speed that only fiber Internet can offer.

We encourage Brookhaven officials to continue to explore ways to bring fiber Internet to town. Right now, C Spire is the only company willing to build the infrastructure for the service. That gives the company the upper hand when it comes to negotiations with cities and communities. But other cities are finding ways to work with the company. We can only hope Brookhaven can too.