Giving Compass' Take:
- Jacob Levin discusses a new meta-analysis demonstrating the relationship between tree coverage and property values in densely populated urban communities.
- Why do homes with higher property values tend to have more trees around them? How can you advocate for more accessible greenspace in your community?
- Learn more about key issues in homelessness and housing and how you can help.
- Search our Guide to Good for nonprofits focused on homelessness and housing in your area.
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In densely populated urban areas, trees may be the leafy secret to an increase in property values.
Through a novel meta-analysis, Pamplin College of Business researchers used multiple data sets to confirm that in urban areas, trees add value to a property, but it depends on where those trees are.
Homes tend to be worth more when trees are nearby to provide shade and improve the look of the neighborhood. But on-site trees are not always desirable because they come with downsides such as maintenance or safety concerns, the study found.
“While tree cover supports owners’ property values, their tree cover benefits the greater community property values,” says Kevin Boyle, a professor of real estate at Virginia Tech.
The study, done in partnership with the US Forest Service, analyzed geographic information system data from the US Environmental Protection Agency for nine metropolitan areas to assess the value of tree coverage near properties. The study used the distances of less than 330 feet, between 330 feet and one-third of a mile, and one-third to two-thirds of a mile to represent the distance from property to nearby trees.
The data shows property values based on tree coverage vary by city. For comparison, Fresno, California, and Milwaukee, Wisconsin, were used to represent the lowest and highest property values affected by tree cover.
In Fresno, the existing tree cover on or near a property only adds about $9 to an average-priced property. In Milwaukee, that same tree cover adds roughly $3,500.
Increase the number of trees on or near a property by 10 percent, and that property in Frisco would decline in value by $114, or 0.1%. Put those trees between one-third of a mile and two-thirds of a mile, and the home’s value increases by $6,751, or 3.2%.
By contrast, the Milwaukee home’s value would increase by $39,701, or 24%, with more tree coverage within 330 feet. Distant tree cover, between one-third and two-thirds of a mile, adds another $27,194 to the home’s value, a 16% increase.
Read the full article about trees affecting home values by Jacob Levin at Futurity.