AIRPORT DISTRICT -- As Burbank Airport and its host city hammer out
the details of the development agreement for a replacement airline
terminal, those in the real estate industry are grappling with the future
impact on home values.
With approval of the proposed terminal still uncertain -- the City
Council isn’t set to vote on the project until April -- many questions
How many more flights the 14-gate facility will handle, how much more
jet noise will ripple through city neighborhoods and the amount of
increased traffic on city streets are still unknown.
“There’s no way it’s not going to affect property values,” veteran
mortgage banker Peggy Nudo said about the new terminal. “It’s going to
affect it negatively. But we don’t know how much.”
City and airport officials have acknowledged the likelihood of an
increase in the number of flights. Although the new terminal would have
the same number of gates as the current facility, its 330,000 square foot
building is almost twice as large.
Burbank Realtors said they have heard concerns about airport expansion
from prospective home buyers, especially those considering property
directly under the flight path. Still home prices have been going up --
as they have elsewhere in the region -- in the six months since the
airport deal was reached.
Wayne Schulze, of Century 21 Paul and Associates, said he hasn’t had
any trouble selling homes.
“It’s not an issue,” Schulze said. “The expansion of the airport has
not been affecting the salability of houses.”
Realtors divide Burbank into two sectors -- Area 10 and Area 11 -- on
either side of the Golden State (5) Freeway. Area 10 encompasses the
neighborhoods south and west of the freeway, including homes most
affected by airport noise.
Home sales in Area 10 have been strong, Schulze said. Through October,
882 homes were sold in Burbank this year, with 451 of those in Area 10.
The average sale price was $227,500. The more desirable Area 11 averaged
$274,300, Schulze said.
But Nudo, who works for a Los Angeles mortgage banker, said she was
skeptical of Schulze’s rosy view. She said home sales in Burbank’s
Airport District are down 7.1% over last year.
However, with the city’s economy stronger than ever, demand to live in
Burbank continues to increase, Realtor Barry Burnett said.
“It has been my experience that the people that are buying are happy
to live in the homes in that area,” Burnett said. “They are happier to
live near an airport in (Burbank) city limits, than anywhere in Los
Burnett, who owns Burbank-based Barry Burnett Realty, said homes in
the city -- even those directly under the flight path -- have been
selling for between $38,000 and $50,000 more than comparable properties
in North Hollywood and other areas outside the city.
Realtors are legally required to inform potential buyers about the
airport in a disclosure form. But they are not required to mention the
proposed terminal project.
Some mention it, others don’t.
Burnett said he does.
“We’re identifying it because the lawsuits won’t wait,” Burnett said.
“We’re being extra cautious to inform people over and above.”