Arboriculture & Urban Forestry 43(2): March 2017 mental benefits, if appreciated by potential home buyers, may also affect the economic value of trees as expressed in terms of the selling price or value of property, the focus of the current study. Regression models, particularly hedonic models that consider location, structural, and vegetative characteristics, are useful in understanding the relationship between property value and trees or open space. Studies regarding selling price offer insight to the value of greenspace broadly and its relationship to lot size and location, the value of landscaping, and finally, the value of preser- vation of existing tree canopy or mature trees. Several studies have considered the “greenness” of neighborhoods, meaning the proportion of trees and other plant material in residential communi- ties. Using the Normalized Difference Vegetation Index, which is derived from 30 m Landsat imag- ery, and included as an independent variable in a hedonic model, two studies [one based in North Carolina, U.S. (Mansfield et al. 2005) and the other in Indiana, U.S. (Payton et al. 2008)] found that in most cases, an increase in the amount of veg- etation in a residential neighborhood adds value to the parcel. Not all greenspaces, however, are viewed equally or even as assets. In the North Car- olina study, it was found that the ownership and land use of a greenspace can determine whether the property acts as a positive or negative con- tributor to adjacent residential property values. When considering the contributory value of trees and green space to real estate value, it is increasingly evident that not all trees (or spaces) are equal. Researchers in Denmark (Panduro and Veie 2013) categorized green space into eight different types, and using hedonic models quantified each type’s impact on housing prices. Results indicated that “greenspace is not a uniform environmental amenity, but rather a set of distinct goods with very different impacts on housing price.” Parks and lakes are associated with a large price premium. Sports fields and agricultural fields were found to have no significant effect. Nature areas were found to have a small price premium. The effect on value for common spaces differed between apartments (significant positive) and houses (not significant). Green buffers designed to shield residential areas from industrial areas or infrastructure were actu- ally found to have a negative effect on housing 57 pricing particularly if the green buffer was poorly maintained. Payton and Ottensmann (2015) con- sidered housing prices in reference to proximity to public parks and greenways, which was found to vary depending on broader neighborhood con- texts. Further, Sander (2016) modeled landscape changes over time that are positively associated with housing price to estimate changes in house values as input to land-use planning decisions. A study conducted in the Washington, D.C., U.S., area compared real estate value for tra- ditional large-lot residential development to small-lot cluster development accompanied by preservation of open space. Researchers found that private acreage (a larger lot) positively affects prices but so does subdivision open space— possibly substituting for private lot size. Having a lot in a cluster development that is adjacent to subdivision open space appears to enhance the value of the house. Hedonic modeling is used to simulate the effects on prices. Results suggest aver- age house prices are slightly lower with the clus- tering, particularly for lots not adjacent to open space (Kopits et al. 2007). A similar study based in Iowa, U.S., also found “significant positive mar- ginal effects due to the presence of open space/ conservation features” (Bowman et al. 2009). Do the environmental and economic ben- efits of conservation development that preserves open space at the expense of individual lot size offset the costs, including the perceived reduc- tion in value of smaller-sized parcels? A study conducted in Rhode Island, U.S., considered the costs and benefits of conservation subdivi- sions as compared to conventional subdivisions. Variables, including price premiums, investment costs, and absorption rates, were analyzed using ordinary least squares regression and analy- sis of covariance to investigate price per acre of developed lots. Results showed that lots in con- servation subdivisions carry a premium, are less expensive to build, and sell more quickly than conventional subdivisions (Mohamed 2006). Regarding the effect of trees on property value expressed as sales price, in most cases, the pres- ence of well-maintained landscape trees that are properly located around residential homes, com- mercial businesses, and even office properties are considered assets, and contribute favorably to ©2017 International Society of Arboriculture
March 2017
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