Date of this Version
Real Estate Economics
We investigate the correlation between curbside tree plantings and housing price movements in Philadelphia from 1998 to 2003, comparing two programs, one by the Philadelphia Horticultural Society (PHS) that requires block-group effort that focuses on low-income neighborhoods and the other by the Fairmount Park Commission that is individual-based without specific target areas. A 7 to 11% price differential is identified within 4,000 feet of the Fairmount tree plantings. We argue that this is largely driven by either social capital creation or a signaling mechanism, on top of an intrinsic tree value (around 2%). Findings using the PHS tree program suggest that development of social capital or environmentally conscious behavior might be a less important channel. Any positive changes brought by the PHS tree plantings were not detected with sufficient statistical power.
This is the peer reviewed version of the following article: Wachter, S. M. and Wong, G. (2008), What Is a Tree Worth? Green-City Strategies, Signaling and Housing Prices. Real Estate Economics, 36: 213–239., which has been published in final form at doi: 10.1111/j.1540-6229.2008.00212.x . This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving http://olabout.wiley.com/WileyCDA/Section/id-820227.html#terms.
Wachter, S. M., & Wong, G. (2008). What Is a Tree Worth? Green-City Strategies, Signaling and Housing Prices. Real Estate Economics, 36 (2), 213-239. http://dx.doi.org/10.1111/j.1540-6229.2008.00212.x
Date Posted: 27 November 2017
This document has been peer reviewed.