Impact of Oyster Aquaculture in Virginia on Waterfront Property Values

Abstract

Virginia is the east coast's largest producer of eastern oysters and produces more than any other state. As the industry grows to meet increasing demand, more conflicts have arisen with other resource users, especially waterfront property owners. Some landowners claim oysters impact recreational and aesthetic uses of their property, therefore lowering the value of the home. Using a hedonic property value model, this study examines the effect of oyster aquaculture on waterfront properties by using 2,245 property sales from 16 counties and independent cities and information on aquaculture activity from 2012-2016. The results suggest that oyster aquaculture has a positive effect on waterfront property values, but a negative effect when using cage equipment.