Calculating an urban tree's worth

Two recent studies by Geoffrey Donovan, an economist and research forester at the Pacific Northwest (PNW) Research Station, and David Butry, an economist with the National Institute of Standards and Technology, yielded specific dollar values for street and neighborhood trees in Portland, Oregon, and for yard trees that provide summer shade in Sacramento, California. This research is important to city governments, communities, and environmental organizations because it helps them make a case for publicly funded “green infrastructure,” that supports many environmental and social amenities.

 

Key findings:

• The presence of street trees increased the sale prices of houses in east Portland neighborhoods by an average of $8,870 and reduced time on the market by an average of 1.7 days.

 

• A tree in front of a house increased the house’s sale price by an average of $7,130. The tree’s benefits spilled over to houses within a 100-foot radius, increasing their combined value by $12,828.

 

• Citywide, street trees add $1.1 billion to Portland’s property value, or $45 million a year. Annual maintenance costs of $4.6 million are a small fraction of the trees’ value and are mostly borne by property owners.

 

• Shade trees growing on the west and south sides of Sacramento houses lower summertime electricity use by reducing the need for air conditioning. The combined west- and south-side tree cover reduced summertime electricity bills by an average of $25.16.

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