If two identical homes are sold in a quiet street and a noisy street, which has lower value?

• A. The quiet street
• B. The noisy street
• C. Both the same
• D. It depends on the neighborhood

Answer: (B)

Desirability of location drives property value, and street noise is a negative external factor that reduces that desirability. With two identical homes, buyers typically prefer a quieter street because it offers a more comfortable living environment, calmer streets, and better sleep. That greater appeal translates into a higher price for the quiet-street home and a lower price for the noisier-street home. So the home on the noisy street has the lower value. The other options don’t fit because a quieter street is generally more valuable, and while neighborhood context matters, the scenario isolates noise as the distinguishing factor, making lower value the result for the noisier street.