The Influence of Canopy Cover on Property Values in a Small Southern US City

Abstract

Urban forests have been shown to impact residential property values in the United States and other countries. This study demonstrates a hedonic pricing analysis estimating the impact of urban forest canopy cover on single-family residential property values using Lakeland, Tennessee, during the period of 2001 to 2005 as a typical study area for the southern United States. Canopy cover on the lot was not a significant contributor to property values. However, a 1.0% increase in canopy within buffers of 100 m, 500 m, and 1 km surrounding the lot was associated with a 0.12%, 0.17%, and 0.21% increase in home sales prices, respectively. Although the percentage increases were small, given the price of a home in areas like these, the dollar values were high. These results can be used to assist urban planners and policy makers in prioritizing forested lands for conservation and to evaluate economic effects of urban forestry policies and programs.