Fiber Broadband Access Can Boost Home Values
The availability of really fast broadband in your neighborhood could increase your home’s value by more than three percent.
High-speed fiber broadband service, with 1 Gbps download speeds, can add more than $5,400 to the value of an average U.S. home, according to a study commissioned by the Fiber to the Home Council Americas (FTTH), an advocacy group made up of fiber equipment vendors and broadband providers.
That 3% figure is approximately equal to new counter tops and appliances, energy efficient windows, hardwood floors, and many other updates, according to an article published by Consumer Reports.
For homes in communities where 1 Gbps broadband was available, sale prices were seven percent higher than for homes in areas with broadband speeds of 25 Mbps or lower. The study, possibly the first to look at the link between home values and fiber service, could help drive a new “fiber boom,” like late in the late 2000’s, said Kevin Morgan, FTTH’s board chairman and director of marketing communications at Adtran, a telecom equipment maker. GWI has announced new deployments in recent months, and this study can help local governments push providers for new fiber deployments. “Gigabit communities are empowered communities,” said FTTH Council president Heather B. Gold. “The study results suggest that gigabit broadband communities exhibit a per capita GDP approximately 1.1 percent higher than the similar communities with little to no availability of gigabit services.”
GWI helps local officials work on deploying new or faster broadband service. “The rise in property values and the resulting rise in a town’s tax base are only one part of the economic benefit. In an economy like Maine’s where small businesses, home-based businesses, and telecommuting are vital parts of the economy, building reliable gigabit service to residences provides a key factor of the economic infrastructure.,'” says Fletcher Kittredge, GWI’s CEO. In 2014, FTTH released a study finding higher per capita gross domestic product in communities where gigabit Internet was available.