By Tom Howarth
The Endangered Species Act (ESA), often criticized for its perceived economic drawbacks, has a more nuanced and positive impact on property markets than previously thought, a new study has revealed.
The research finds that while home prices within federally protected areas remain stable, prices in surrounding communities can rise by as much as 10 percent, suggesting economic benefits for nearby homeowners.
Why This Matters
The ESA, enacted in 1973 to safeguard vulnerable species and their habitats, has long been a focal point of contention.
Critics, including some in the construction and real estate industries, as well as politics, argue that the Act stifles development and drives down property values. However, the study, led by Eyal Frank of the University of Chicago, demonstrates that these criticisms are often overstated.
“When the Endangered Species Act was passed in 1973, no one fully understood how strong it was and how much it gave final decision and final authority to the Fish and Wildlife Service and to the National Marine Fisheries Service,” Frank told Newsweek.
“You might have the camp of conservationists saying that the Act has no negative impacts, and you have the camp of land developers saying that the Act is entirely detrimental to land development—I think we see here that the truth is somewhere in the middle.”