The value of leafy streets and yards is more than just aesthetic. When it comes to property investments, money can (not quite literally) grow on the trees.
Planting big, shady trees, of course, makes for a great way to lower home heating bills during the summertime. And, of course, an even bigger difference in the bottom line shows when you sell or rent your verdant home.
But the real difference in your bottom line, apparently, depends on your neighbors’ green thumbs:
A study [PDF] by the U.S. Forest Service’s Pacific Northwest Research Station published last month in Urban Forestry and Urban Greening, combined rent data from Craigslist apartment listings in Portland, Oregon with tree data from Google Earth to figure out the effect of trees on rent. The researchers, Geoffrey Donovan of the Forest Service and David Butry of the National Institute of Standards and Technology, found that trees planted directly on a property increase a rental unit’s value by more than five dollars per month. Rental units with trees abutting the property lines feel a 21-dollar bump. The trend holds true even when researchers control for other factors that determine a neighborhood’s desirability.
An earlier study by the same researcher showed that property sales can grow by as much as $13,000 when the next door property features trees.
In other words, people want houses next to houses with trees more than they want trees of their own. It’s hard to take an educated guess as to why this is, although another study showed that neighborhoods with more trees feature lower crime rates and healthier newborns. Perhaps the presence of trees in a neighbor’s yard tells buyers that the they can trust their surrounding community and provide a safe place to raise their kids?
Regardless, it’s clear that trees are a worthwhile investment — and not just for the environmental benefit.
Of course, you probably can’t control what your neighbors do. But you can make these sorts of green, value-boosting investments in your own home. We can help.
Our Dallas home equity loans, Austin home equity loans, and Houston home equity loans are excellent tools for boosting the value of your home. Right now, interest rates are historically low, which makes it much more likely that you’ll receive a healthy return on your investment. If you’ve been waiting for the Texas housing market to rebound before attempting to sell, a home equity loan-funded investment is a great way to ensure that you (and your neighbors) will be rewarded for your patience.
