The Gas Station Effect

Steven McCord

By Steven McCord

Co-founder and CEO of Spatial Laser, the company behind Locate Alpha.

February 07, 2022

Some things, when near to a home, can have a negative effect on value. What about gas stations? The fumes, traffic and noise would probably make a home less desirable if the home is too close. But by how much, and can the data show this?

Homes near gas stations are worth 30%-50% less

We looked at 430,000 historical sales in the Dallas-Fort Worth area. Homes near gas stations sold for $100,000 less than those at least a mile away. Homes within a tenth of a mile of a gas station (approx. 500 feet) sold for a median price of only $230,000, compared to $330,000 for those a mile away, a difference of 30%. Homes 1.5 miles away sold for a median price of $345,000, raising the gap to 50%.

Note: Shaded bands show the percentile distribution at each level, with the outer band representing the 20th and 80th percentiles. Source: North Texas Real Estate Information System, Spatial Laser analysis. Data from January 2017 to January 2021, covering all DFW CBSA counties.

Focusing specifically on suburban counties (Collin and Denton) and homes over $400k in value, the effect is still there. Homes closest to gas stations had a median sales price of $446,000, vs $520,000 for homes a mile away, a difference of $74,000, or at least 15%. Homes a mile and a half away sold for $550,000, raising the gap to $104,000, or 19%.

Note: Shaded bands show the percentile distribution at each level, with the outer band representing the 20th and 80th percentiles. Source: North Texas Real Estate Information System, Spatial Laser analysis. Data from January 2017 to January 2021, covering all Collin and Denton counties and homes that sold for $400,000 and over.

Gas stations cut appreciation in half

The last few years have seen massive appreciation in the DFW area. But did homes near gas stations enjoy this as well?

Homes near a gas station appreciated only half as fast as those further away, based on our analysis of home re-sales over the last five years. Homes within 800 feet of a gas station (0.15 miles) appreciated only 11.9% during two years of ownership, compared to 20-22% for homes further away, over the same two years.

Appreciation seems relatively unaffected by distance to a gas station until you are within 800 feet (0.15) mile, when it drops sharply.

Note: Shaded bands show the percentile distribution at each level, with the outer band representing the 20th and 80th percentiles of pricing at each distance. Source: North Texas Real Estate Information System, Spatial Laser analysis. Data from January 2017 to December 2020, covering all DFW CBSA counties.

Methodology notes

For the average closing price vs gas station distance analysis, we looked at a total of 433,000 historical sales in the D-FW since January 2017 and calculated the distance of each to a gas station. For the appreciation analysis, we looked at homes that were bought and then re-sold two years later, between 2017 and 2021, across the DFW area. There were 11,000 such homes. Of these, 126 were sold for at least $300,000 and were within 0.15 miles of a gas station (roughly a sixth of a mile).


Steven McCord

By Steven McCord

Steven is the co-founder and CEO of Spatial Laser, the company behind Locate Alpha. Steven also enjoys investing in single-family homes. He can be reached at info@locatealpha.com. Locate Alpha helps single-family home buyers find the perfect place to invest, in minutes, using detailed location data.

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