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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.

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