by GH Donovan, DT Butry
Urban Forestry & Urban Greening 10:163-1682011
A few studies have assessed the added value that trees bring to residential property prices, but none have looked at rental properties. Renters represent approximately 1/3 of U.S. households and tend to differ significantly in their demographics and thus possibly in their environmental preferences. Understanding the effects of trees on rental prices is therefore important from a policy standpoint. The authors studied 1,000 single-family home rental properties in Portland, Oregon. Monthly rents were taken from rental ads (Craigslist), and number of trees per lot and their crown area were determined using Google Earth. The hedonic price method (here a semi-log function) was used to estimate the value of trees as an environmental good. An additional tree on a lot was found to increase the monthly rental price by $5.62, and an additional street tree by $21.00. These results were similar to the authors’ results in a study on properties owned by the residents, suggesting that renters do have similar environmental preferences to property owners.