Your next-door neighbor, nuclear reactor: real estate and societal readiness
PI: Nonna Sorokina (Business Division)
Plan for funding tuition for graduate students, or the remainder of the researcher’s salary for postdoc and research faculty: Self funded
Living near nuclear reactors might seem unusual, but for many people, it is a fact of life. Residential areas, schools, and businesses often coexist with these facilities, forming communities that thrive even within close proximity to such massive infrastructure. Furthermore, recent developments in nuclear reactor technology suggest the potential for small-scale reactors to be located within a multitude of commercial buildings. Thus, as the future points toward an increased reliance on nuclear energy, this proximity could become a source of contention, especially if fears about safety or disruptions to local economies arise. One major issue is the potential impact on real estate prices, which could shape public attitudes and opposition to this essential form of energy.
Nuclear energy is increasingly being viewed as a key part of the solution to decarbonizing energy systems. As the global focus shifts to renewable and low-carbon energy sources, nuclear power stands out for its ability to provide consistent, large-scale electricity generation and direct heat generation without greenhouse gas emissions. This capacity becomes even more critical as economies expand and rely more on advanced technologies like artificial intelligence, supercomputing, and data-intensive industries. These sectors require a stable and enormous energy supply, making nuclear power an attractive choice for meeting such needs sustainably.
Public perception plays a significant role in shaping these economic realities. If communities view living near nuclear reactors as risky or undesirable, demand for housing in those areas could decrease, leading to a drop in real estate prices. Conversely, if reactors are seen as safe and beneficial—offering employment opportunities or reliable energy access—real estate markets may remain stable or even grow. This dichotomy underscores the importance of effective public communication and proactive planning in expanding nuclear energy infrastructure.
The future of nuclear energy also involves technological advancements, such as the development of smaller, more flexible reactors that can be integrated into diverse settings. These reactors, designed with enhanced safety features, may alleviate some concerns and reduce the stigma associated with living near nuclear power facilities. However, the adoption of these technologies will still depend on careful policy measures to protect local economies and address concerns about housing markets.
Short description: Surprisingly, many people live very close to nuclear reactors, such as those near the North Anna Nuclear Power Plant in Virginia, located about 40 miles south of Washington, D.C. Despite its proximity to a major metropolitan area and its location near a fault line, the surrounding community continues to grow. Residential areas, a store and a church are located literally down the road.
At the same time, in response to the escalating energy demands of artificial intelligence and data centers, major technology companies like Microsoft and Amazon are investing in traditional nuclear energy and in development of microreactors to secure reliable, carbon-free power. In September 2024, Microsoft announced a 20-year agreement with Constellation Energy to restart Pennsylvania’s Three Mile Island Unit 1 reactor, aiming to supply its data centers with low-carbon electricity by 2028. 1 Similarly, Amazon has entered into agreements to develop small modular reactors (SMRs) in collaboration with Energy Northwest in Washington and Dominion Energy in Virginia, targeting operational capacity by the early 2030s.2 Power Engineering
If microreactors spread across the map, then in just 10-15 years everyone may find themselves being a nuclear reactor’s neighbor.
The Nuclear Regulatory Commission (NRC) and the Environmental Protection Agency (EPA) require that an Emergency Planning Zone (EPZ) be established around each commercial nuclear power plant to allow for emergency planning and response. The EPZ is generally defined as a 10mile radius around a nuclear power plant for immediate protective actions like evacuation and sheltering, with an additional 50-mile radius for considerations like contamination of food and water supplies, with a reduced 5/30 miles limits for smaller modular reactors.
Naturally, differences in real estate prices/sales may be expected in proximity to nuclear reactors and such differences may have variety of implications ranging from societal acceptance of nuclear energy in general and of reactors nearby to economic well-being of the populations affected by real estate pricing differences.
There are now 54 nuclear power plants operating in 28 states,3 yet no comprehensive research exists of the conditions of real estate markets in proximity to the reactors. Limited literature, published in non-real estate journals, presents conflicting evidence. Many studies, including those by Munro and Tolley (2018) in Illinois, Metz and Clark (2006) and Clark et al. (1997) in California, Gawande and Jenkins-Smith (2001), and Fink and Stratmann (2015), find no significant impact of proximity to nuclear plants on property values, even in the aftermath of disasters like Fukushima, as also observed by Ando et al. (2017) in Sweden and Yamane et al. (2013) near Fukushima. Conversely, other studies, such as Davis (2011) and Clark and Allison (1999), report that proximity can negatively influence housing prices, with Davis estimating a 3-7% reduction within a 2-mile radius of a plant, while Tanaka and Zabel (2018) found temporary declines near U.S. plants postFukushima, and Bauer et al. (2017) identified significant price drops in Germany following plant closures after the same disaster.
We plan to identify and study properties around all U.S. nuclear power plants utilizing EPZ standards and using sentiment and societal readiness level towards nuclear energy as important additional factors. This research aligns with multiple IEE Research Themes, but most notably, “Integrated Energy Systems” and “Equitable Communities and the Built Environment.” This project has high potential for external funding as outlined below.
Potential opportunities for eventual external funding: NSF Economics, DOE grants, NRC grants, U.S. Energy Foundation grants and other funding opportunities related to promotion of sustainable