Varying Effects of Urban Tree Canopies on Residential Property Values across Neighborhoods

Abstract

As more land area than ever is covered with impermeable surfaces causing problems in the environment, urban trees are effective not only in mitigating environmental problems in the built environment and reducing buildings’ energy use, but also in increasing social and economic benefits. However, the benefits urban trees provide are not evenly distributed but rather disproportionately distributed in high-income neighborhoods. The purpose of this study is to estimate the varying effects of urban trees based on a variety of factors that have influence on tree canopy coverage, including land constraints, new developments, financial capacity to maintain trees, and neighborhood characteristics. Using a unique dataset that includes 24,203 single-family residential sales from 2007 to 2015 merged with Urban Tree Canopy (UTC), this study utilizes spatial models to empirically evaluate the impact of UTC on residential property values in the housing market. Multi-Level Mixed (MLM) models are used to capture the varying effects of tree cover, based on land constraints, new development, financial capacity, and neighborhood characteristics. The findings show the effect of trees is positive and varies across neighborhoods, and implication of the results to best achieve specific desired outcomes in tree-related policies and urban development are apparent.

Influence of urban forests on residential property values: A systematic review of remote sensing-based studies

“…At the residential property scale, tree canopy coverage was reported to have a positive effect on residential property values [ 16 , 29 , [49] , [50] , [51] ], particularly for middle-to high-income homes with large lots [ 52 ]. At the neighborhood public space scale, several studies reported a positive effect of large forest/tree canopy coverage/green vegetation cover within a radius buffer of 20 m–400 m (e.g., Refs.…”

“…Tree canopy coverage within a residential property was reported to have a negative effect on residential property values in the majority of cases [ 24 , 25 , 42 , 50 , 65 , 66 ], particularly in low-income neighborhoods [ 16 , 52 ]. A few studies found tree cover within residential properties to have a non-significant effect on housing prices [ 34 , 53 , 67 ].…”

“…In contrast, residents in marginalized and poor neighborhoods are less willing to pay to plant and maintain trees and forest cover due mainly to low financial capacity and societal acceptance, such that tree coverage would be a burden to them. Therefore, high-income neighborhoods are more willing to pay for the benefits trees and forest cover provide than low-income neighborhoods [ 52 ]. In the case of peri-urban nature, WTP generally increases with income and wealth among households, although an increase in income and education levels will increase WTP more for households at the lower and middle end, respectively, than those at the high end of the WTP distribution [ 55 ].…”

“…Urban forest types and their benefits to human well-being and the related side-effect on housing prices were found to be more valued in developed countries compared to developing countries. Trees in residential lots (particularly in low-income neighborhoods) [ 16 , 52 ], and distant unmanaged forests in developing countries [ 10 , 57 , 70 ] were reportedly perceived as disamenity and devalued housing prices because of the dangers they pose to residents. Conversely, only in two studies were neighborhood forests perceived as disamenity in developed countries [ 13 , 68 ].…”

Sustainable Real Estate: Management, Assessment and Innovations

“…The paper by Youngme Seo entitled "Varying Effects of Urban Tree Canopies on Residential Property Values across Neighborhoods, social and economic benefits" [4] utilizes spatial models to empirically evaluate the impact of Urban Tree Canopy (UTC) on residential property values in the housing market. The Author elaborates a dataset that includes 24,203 singlefamily residential sales from 2007 to 2015 in the city of Des Moines (Iowa).…”