What effect does increased traffic flow typically have on property values?

Increased traffic flow generally impacts property values through the concept of external obsolescence. This term refers to a loss in property value due to external factors in the surrounding environment, which can include excessive traffic. High levels of traffic can lead to noise pollution, air pollution, and safety concerns that decrease the overall appeal of the area, contributing to a decline in property value.

Rather than enhancing desirability, increased traffic often makes properties less attractive to potential buyers, as they may prefer quieter, less congested neighborhoods. Similarly, while enhanced marketability and higher neighborhood safety might be desirable outcomes, they are usually not connected to increased traffic flow—instead, heavy traffic can create an undesirable living environment that hinders these positive factors. Understanding this relationship is essential for real estate professionals when evaluating market conditions and property potential.