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Although a green energy source, the location of electrical generating wind turbines may cause a disamenity effect (negative externality). The establishment of a wind farm is known as a locally undesirable land use (LULU) and leads to the not in my backyard syndrome (NIMBY). In an application of the contingent valuation method (a survey technique which elicits individuals’ preferences and measures these preferences in monetary terms) a willingness to accept a framework was used to estimate the aggregate annual compensation required to allow the construction of a wind farm near Jeffrey’s Bay, South Africa. This compensation amounted to R490 695. A binary choice Logit analysis found that retirement status, concern about climate change, concern about view shed impacts and the offer amount are important predictors of voting for or against the project.

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Social housing projects often face substantial “Not‐in‐my‐backyard” (NIMBY) sentiment and, as a result, are frequently plagued by local opposition from communities who argue that nearby property prices will be affected adversely by these developments. International hedonic pricing studies conducted have, however, produced mixed results with some concluding that social housing developments may in fact lead to an improvement in surrounding property values. There is, however, a paucity of South African evidence. This study considers the validity of the most pervasive NIMBY argument, the claim that social housing developments negatively affect nearby property values, by considering the property prices of 170 single‐family homes in the Walmer neighbourhood, Nelson Mandela Bay, as a function of their proximity to an existing low‐cost housing development. The results of this study indicate that in the case of one Nelson Mandela Bay low‐cost housing development, a negative impact is exerted on the property values of nearby houses.

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