Trees in the city: estimating the value of street trees in Portland, Oregon using hedonic valuation
Geoffrey Donovan, David Butry
We use a hedonic model to simultaneously estimate the effects of street trees on the sales price and the time on market of houses in Portland Oregon. On average, street trees add $7020 to sales price and reduce time on the market by 1.9 days. Extrapolating to the whole city, street trees increase property values by $1.1 billion, which is equivalent to annual benefits of $45 million assuming a 4 % discount rate. In addition, we found that the benefits of street trees spill over to neighboring houses, which implies that if the provision and maintenance of street trees is left solely to homeowners, as it is now, then there will be too few street trees in Portland from a community perspective.
Landscape and Urban Planning
street trees, urban forestry, hedonic valuation, Portland, Oregon