October 9, 2018
Activities: Crime / Legal, Environment
Geography:
Demographics:
Annual ROI: 0.0%
Image source: Unsplash
It makes sense that trees and other natural resources make areas more pleasant to look at. But have you ever wondered if there were real economic benefits to having them there as well?
Knowing the monetary value of things is important in our society. What is not counted does not count in public decision making. Some research has been done investigating the impact of trees and public greenspaces in our cities and towns. And the results may surprise you.
According to the University of Washington:
While development costs can be greater for lots where trees were conserved (5.5% in one study), builders can recover extra costs of preserving homes through higher sales prices and faster sales for houses on wooded lots.
The presence of larger trees in yards and as street trees can add from 3% to 15% to home values throughout neighborhoods.
Averaging the market effect of street trees on all house values across Portland, OR (population 590,000) yields a total value of $1.35 billion, potentially increasing annual property tax revenues $15.3 million.
Homes that are adjacent to naturalistic parks and open spaces are valued at 8-20% higher than comparable properties, with the positive price effect declining to near zero about ½ mile away.
A study found 7% higher rental rates for commercial offices having high quality landscapes.
Shoppers claim that they will spend 9% to 12% more for goods and services in central business districts having high quality tree canopy.
Shoppers indicate that they will travel greater distance and a longer time to visit a district having high quality trees, and spend more time there once they arrive.
Furthermore, the University relates the value of properties to proximity to public parklands.
More than 30 studies have shown that people are willing to pay more for a property located close to an urban open space than for a house that does not offer this amenity, a finding known as the “proximate principle.” The studies evaluate the effects of parks and open spaces that usually contain trees and forests.
With few exceptions, studies find that homes adjacent to naturalistic parks and open spaces are typically valued at about 8% to 20% higher than comparable properties. Values show a linear decline with distance from the edge of an open space, with a positive price effect declining to near zero at about 1/2 mile away.
The NY State Department of Environmental Conservation similarly points out economic benefits of trees:
Landscape trees provide benefits that far exceed the costs of planting and care over their lifetime. Environmental and esthetic benefits, such as energy savings, stormwater runoff reduction, cleaner air, and higher property values, are an average of three times greater than tree care costs. The greatest benefits are energy savings and higher property values.
One healthy public tree in its 20th year after planting provides $96 in benefits and only costs $36, for an annual net benefit of $60. One hundred healthy yard trees over 40 years provide $364,000 in benefits and only cost $92,000, for a 40-year net benefit of $272,000. One hundred healthy public trees over 40 years provide $380,000 in benefits and only cost $148,000, for a 40-year net benefit of $232,000.
Properly cared for, Trees are valuable and growing assets worth three times the investment.
Healthy trees mean… healthy people.
One hundred trees remove 53 tons of carbon dioxide and 430 pounds of other air pollutants per year.
Healthy trees mean … healthy communities.
Tree-filled neighborhoods lower levels of domestic violence and are safer and more sociable.
Healthy trees mean … healthy environment.
One hundred mature trees catch about 139,000 gallons of rainwater per year.
Healthy trees mean … homeowner savings.
Strategically placed trees save up to 56% on annual air-conditioning costs.
Evergreens that block winter winds can save 3% on heating.
Healthy trees mean … better business.
In tree-lined commercial districts, shoppers report more frequent shopping, longer shopping trips, willingness to pay more for parking and willingness to spend 12% more for goods.
Healthy trees mean … higher property values.
Each large front yard tree adds 1% to the house sales price, and large specimen trees can add 10% to property value.
If your city is going through economic development initiatives and looking for cost-effective ways to add incremental value, start with trees and public greenspaces. Clearly there are many benefits. And with the right economic case being made (starting with statistics above), it might be easier than ever to allocate funds to the cause.
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