Do Trees Increase Property Value?

Do trees increase property value? the short answer is yes. Trees are no longer seen as a nice to have in large urban city centres, rather, they have evolved into powerful contributors to the economic and environmental aspects of cities. So, how do trees actually increase property value?. 

According to the Arbor Day Foundation, planting large trees can increase property values anywhere from 3% to 15%. A mature trees value can increase over time and in some cases where Citygreen have planted trees, the trees are worth 34x the value of similar trees due to the planting methods we use to ensure continued growth. The Virginia Cooperative Extension states that adding trees to your landscape can increase property value by anywhere from 5% to 12%. Trees offer shade, shelter, aesthetic appeal and energy savings; . A 2017 study focusing on three Sydney suburbs found a 10% increase in street tree canopy could increase property values by $50,000 on average⁵.

The profound influence of trees on property value has sparked considerable interest and research, unveiling a multitude of benefits that extend far beyond their visual appeal. From enhancing curb appeal to improving air quality and even fostering a sense of community & well-being, the value that trees bring to properties is undeniable.

Commercial VS Residential Benefits of Trees for Property Values

Aspect	Commercial Benefits	Residential Benefits
Aesthetic Appeal	Enhance the overall look and visual appeal of the property	Beautify the landscape and create a welcoming atmosphere
Curb Appeal	Increase attractiveness to potential customers and clients	Boost first impressions for potential buyers or renters
Outdoor Spaces	Provide shaded areas for outdoor seating and relaxation for people to gather.	Create private outdoor spaces for residents to enjoy
Cooling Effect	Shade and transpiration reduce energy costs for cooling systems	Lower cooling costs by providing natural shade to homes
Air Quality	Improve air quality by absorbing pollutants and releasing oxygen	Enhance indoor air quality and create healthier living environments
Noise Reduction	Act as natural sound barriers, reducing noise from traffic or nearby areas	Help reduce noise pollution and create a more peaceful environment
Community Benefits	Contribute to a greener urban environment, attracting businesses and customers. Also shown to increase worker efficiency.	Foster a sense of community and promote neighborhood appeal
Property Value	Increase property value and demand for commercial spaces	Enhance property values and demand for residential homes. Trees are shown to reduce crime by up to 12%
Rent and Lease Rates	Allow for higher rental rates due to improved surroundings	Enable landlords to charge premium rents for homes with scenic views
ROI for Landlords	Yield higher returns on investment for property owners	Attract higher-paying tenants and increase rental income
Long-Term Investment	Mature trees appreciate in value, enhancing the property’s worth	Trees mature over time, boosting property value over the years
Increased Health Outcomes	Trees increase the physical and mental health outcomes for workers.	Trees increase the physical and mental healthy outcomes for families.
Reduced Erosion	Tree root systems help prevent soil erosion on properties by absorbing urban pollutants and particulate matter.	Protect against soil erosion and contribute to landscape stability
Enhanced Privacy	Create natural barriers that enhance privacy for businesses	Provide privacy screens for homeowners and shield properties from view
Biodiversity Benefits	Support local ecosystems and promote biodiversity	Attract birds and wildlife, creating a diverse and vibrant environment
Marketing Advantage	Use green features to market commercial spaces effectively	Highlight green features to attract eco-conscious buyers and renters
Stormwater Management	Trees combined with WSUD principles can help mitigate flooding to commercial assets.	Trees absorb excess water in high rain events reducing flooding

Best Trees for Increasing Property Value

When choosing trees to plant on your property, it’s important to consider your location, climate, soil quality, and nearby utilities. Different tree species thrive in different environments, so it’s important to choose trees that are well-suited to your specific location. For example, if you live in a hot and dry climate, you may want to choose drought-tolerant trees that can withstand the heat. Similarly, if you live in an area with cold winters, you’ll want to choose trees that are hardy enough to survive the cold temperatures for example in a carpark in Edmonton, Canada. Bur Oak (Quercus macrocarpa) was chosen as it has a cold-hardy nature but will provide shade to the cars below due to it’s expansive tree canopy.

We recommend reaching out to your local tree nurseries or your local government forestry team who should have a list of trees that are ideal for your location.

Factors to Consider When Choosing Trees for Increasing Property Value

Soil Quality

Soil quality is another important factor to consider when choosing trees for your property. Trees need well-draining high quality soil that is rich in nutrients & low in soil compaction in order to grow and thrive. If your soil is poor quality or lacks the necessary nutrients, you may need to amend it with compost or other organic matter before planting your trees.

In addition to these factors, it’s also important to consider the size and shape of the tree canopy when it reaches maturity. You’ll want to choose trees that will fit well within your landscape and won’t outgrow their space both above and below ground. It’s also a good idea to choose trees that have a strong and sturdy root structure, as this will help prevent damage from storms or high winds.

Does Tree Maturity Increase Property Value?

Opting for the planting of mature trees offers a range of distinct advantages over choosing younger counterparts. The immediate visual impact and aesthetic uplift provided by mature trees are unparalleled – their substantial size and well-developed canopy can instantaneously reshape the aesthetics and ecology of the landscape. Planting an already established mature tree will also mean the environmental and health benefits trees bring are added to the property that much sooner.

Notably, mature trees can substantially augment property value, heightening the curb appeal and overall desirability of your land to potential buyers or renters. The time-saving aspect is undeniable, as waiting for a young sapling to reach maturity takes years and is time and resource intensive to ensure optimal growth, whereas mature trees grown correctly will have a strong root ball that can establish itself quite quickly. Besides the evident benefits, mature trees contribute to the environment right away by improving air quality, capturing carbon, and creating habitats for wildlife.

Mature trees also tend to handle transplanting more adeptly than younger ones, boasting a higher survival rate. The significance of mature trees extends to defining spaces, demanding less maintenance, and evoking a profound emotional impact through their longstanding presence. While the costs and potential challenges associated with planting mature trees are higher, their overall advantages make them a compelling choice for those aiming to quickly increase the value of their property. 

The Role of Trees in Energy Savings and Lowering Bills

Trees play a significant role in energy savings and lowering bills for property owners. By providing shade in the warmer months, trees help reduce the need for air conditioning, leading to lower energy bills. In the colder months, trees can act as a windbreak, reducing the amount of cold air that enters the home and reducing the need for heating.

Carefully positioned trees can save up to 25% of a household’s energy consumption for heating and cooling. In addition to these energy savings, trees also help reduce water usage by providing shade, reduce humidity by transpiration from leaves, and reducing evaporation ensuring the surrounding lawn and gardens are protected from the harsh sun.

Overall, choosing the right trees for your property involves careful consideration of a variety of factors. By taking the time to research and select the best trees for your location, climate, and soil quality, you can help ensure that your trees will thrive and add value to your property for years to come.

Our team of consultants are available to go over your project and help you deliver high quality projects with better successful trees.