Valuing urban trees: A hedonic investigation into tree canopy influence on property values across environmental and social contexts in Baltimore, Maryland

Abstract

Urban tree canopy yields numerous environmental and social benefits. This study investigates whether the marginal contribution of tree canopy cover to home values depends on certain characteristics of a property and its location. We address this using a hedonic property analysis with data from Baltimore, Maryland. Both Ordinary Least Square and Spatial Lag models were conducted, all including interaction terms between tree canopy cover and various site factors. Our results indicated that, on average, the amount of tree canopy in the 100–400 zone around a single-family property is positively associated with home price. We also find that the marginal impact of canopy on property price increases for properties that are larger in lot size and closer to downtown Baltimore. Model results were mixed in terms of the interactive effects of crime and proximity to major roadway with tree canopy. We suggest that the benefits that tree canopy provides in the form of added privacy, reduced urban heat, noise and pollution may influence these price increases. These findings may signal concerns about the potential for urban greening to contribute to gentrification. In a competitive housing market, those with the capacity to afford to pay more for urban tree canopy and the benefits it provides such as a cooler downtown environment, privacy on larger lots, or reduced noise and pollution from a major roadway may price out those who are unable to pay this urban tree canopy premium. There is, therefore, the potential for unequal increases in home equity across neighborhoods following tree planting and urban greening in Baltimore.