Lead Pipes, Prescriptive Policy and Property Values

Several recent incidences of severe waterborne lead exposure have public authorities and communities across the US rethinking their strategies to address aging water infrastructure. One common question: who should pay for updates? This paper provides evidence of positive property value capitalization effects following remediation of private lead service lines in Madison, WI. Using a 16-year panel of property transactions data and a universal and prescriptive policy change, I identify an average post-replacement price effect on the order of 3–4% of a property's value. This implies a more than 75% average return on public and private remediation costs, suggesting homeowners strongly value the benefits of lead reduction in publicly supplied drinking water.