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Landscaping and House Values: An Empirical Investigation

Author

Listed:
  • François Des Rosiers

    (Laval University, Canada)

  • Marius Thériault

    (Laval University, Canada)

  • Yan Kestens

    (Laval University, Canada)

  • Paul Villeneuve

    (Laval University, Canada)

Abstract

This article is the winner of the Real Estate Valuation manuscript prize (sponsored by The Appraisal Institute) presented at the 2001 American Real Estate Society Annual Meeting. This hedonic study investigates the effect of landscaping on house values, based on a detailed field survey of 760 single-family homes sold between 1993 and 2000 on the territory of the Quebec Urban Community. Environmental information includes thirty-one landscaping attributes of both houses and their immediate environment. By and large, a positive tree cover differential between the property and its immediate neighborhood, provided it is not excessive, translates into a higher house value. Findings also suggest that the positive price impact of a good tree cover in the visible surroundings is all the more enhanced in areas with a high proportion of retired persons. Finally, a high percentage of lawn cover as well as features such as flower arrangements, rock plants, the presence of a hedge, etc. all command a substantial market premium.

Suggested Citation

  • François Des Rosiers & Marius Thériault & Yan Kestens & Paul Villeneuve, 2002. "Landscaping and House Values: An Empirical Investigation," Journal of Real Estate Research, American Real Estate Society, vol. 23(1/2), pages 139-162.
    • Handle: RePEc:jre:issued:v:23:n:1/2:2002:p:139-162
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    References listed on IDEAS

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    2. Basu, Sabyasachi & Thibodeau, Thomas G, 1998. "Analysis of Spatial Autocorrelation in House Prices," The Journal of Real Estate Finance and Economics, Springer, vol. 17(1), pages 61-85, July.
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    4. Can, Ayse & Megbolugbe, Isaac, 1997. "Spatial Dependence and House Price Index Construction," The Journal of Real Estate Finance and Economics, Springer, vol. 14(1-2), pages 203-222, Jan.-Marc.
    5. Des Rosiers, F. & Theriault, M., 1999. "House Prices and Spatial Dependence: Towards an Integrated Procedure to Model Neighborhood Dynamics," Papers 1999-2, Laval - Faculte des sciences de administration.
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    Cited by:

    1. Mulley, Corinne & Ma, Liang & Clifton, Geoffrey & Yen, Barbara & Burke, Matthew, 2016. "Residential property value impacts of proximity to transport infrastructure: An investigation of bus rapid transit and heavy rail networks in Brisbane, Australia," Journal of Transport Geography, Elsevier, vol. 54(C), pages 41-52.
    2. Delores Conway & Christina Li & Jennifer Wolch & Christopher Kahle & Michael Jerrett, 2010. "A Spatial Autocorrelation Approach for Examining the Effects of Urban Greenspace on Residential Property Values," The Journal of Real Estate Finance and Economics, Springer, vol. 41(2), pages 150-169, August.
    3. Alla Koblyakova & Larisa Fleishman & Orly Furman, 2022. "Accuracy of Households’ Dwelling Valuations, Housing Demand and Mortgage Decisions: Israeli Case," The Journal of Real Estate Finance and Economics, Springer, vol. 65(1), pages 48-74, July.
    4. Boris A. Portnov & Yakov Odish & Larissa Fleishman, 2005. "Factors Affecting Housing Modifications and Housing Pricing: A Case Study of Four Residential Neighborhoods in Haifa, Israel," Journal of Real Estate Research, American Real Estate Society, vol. 27(4), pages 371-408.
    5. Steven C. BOURASSA & Martin HOESLI & Jian SUN, 2003. "The Price of Aesthetic Externalities," FAME Research Paper Series rp98, International Center for Financial Asset Management and Engineering.
    6. Wei Li & Jean-Daniel Saphores, 2012. "A Spatial Hedonic Analysis of the Value of Urban Land Cover in the Multifamily Housing Market in Los Angeles, CA," Urban Studies, Urban Studies Journal Limited, vol. 49(12), pages 2597-2615, September.
    7. Chun-Chang Lee & Chih-Min Liang & Cheng-Huang Tung & Yu-Jian Lu, 2018. "The Impact of Luxury Housing on Neighborhood Housing Prices in Taipei City," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(10), pages 1211-1225, October.
    8. Stephanie E. Vanderford & Yoko Mimura & Anne L. Sweaney, 2005. "A Hedonic Price Comparison of Manufactured and Site-Built Homes in the Non-MSA United States," Journal of Real Estate Research, American Real Estate Society, vol. 27(1), pages 83-104.
    9. Johnson, Daniel & Geisendorf, Sylvie, 2019. "Are Neighborhood-level SUDS Worth it? An Assessment of the Economic Value of Sustainable Urban Drainage System Scenarios Using Cost-Benefit Analyses," Ecological Economics, Elsevier, vol. 158(C), pages 194-205.
    10. Nils Soguel & Marc-Jean Martin & Alexandre Tangerini, 2008. "The Impact of Housing Market Segmentation between Tourists and Residents on the Hedonic Price for Landscape Quality," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 144(IV), pages 655-678, December.
    11. Escobedo, Francisco J. & Adams, Damian C. & Timilsina, Nilesh, 2015. "Urban forest structure effects on property value," Ecosystem Services, Elsevier, vol. 12(C), pages 209-217.
    12. Franco, Sofia F. & Macdonald, Jacob L., 2018. "Measurement and valuation of urban greenness: Remote sensing and hedonic applications to Lisbon, Portugal," Regional Science and Urban Economics, Elsevier, vol. 72(C), pages 156-180.
    13. Caroline SCHAERER & Andrea BARANZINI, 2010. "Assessing the Value of View and Landscape Use on the Housing Market," Regional and Urban Modeling 284100033, EcoMod.
    14. Unal, Eda & Chen, Susan & Waldorf, Brigitte, 2007. "How Accessible is Health Care in Your Country?," Purdue Agricultural Economics Report 188958, Purdue University, Department of Agricultural Economics.
    15. Jean Cavailhès & Thierry Brossard & Mohamed Hilal & Daniel Joly & Pierre-François Tourneux & Céline Tritz & Pierre Wavresky, 2007. "Price of periurban landscapes [Le prix des paysages périurbains]," Post-Print hal-02653150, HAL.
    16. Tagliafierro, C. & Boeri, M. & Longo, A. & Hutchinson, W.G., 2016. "Stated preference methods and landscape ecology indicators: An example of transdisciplinarity in landscape economic valuation," Ecological Economics, Elsevier, vol. 127(C), pages 11-22.
    17. Boris A. Portnov & Bella Genkin & Boaz Barzilay, 2009. "Investigating the Effect of Train Proximity on Apartment Prices: Haifa, Israel as a Case Study," Journal of Real Estate Research, American Real Estate Society, vol. 31(4), pages 371-396.
    18. Coley, Madison C. & Florkowski, Wojciech J., 2006. "Valuing House and Landscape Attributes: Application of the Hedonic Pricing Technique," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35385, Southern Agricultural Economics Association.
    19. Tahvonen, Outi & Airaksinen, Miimu, 2018. "Low-density housing in sustainable urban planning – Scaling down to private gardens by using the green infrastructure concept," Land Use Policy, Elsevier, vol. 75(C), pages 478-485.
    20. Fabrizio Ascione & Rosa Francesca De Masi & Margherita Mastellone & Silvia Ruggiero & Giuseppe Peter Vanoli, 2020. "Green Walls, a Critical Review: Knowledge Gaps, Design Parameters, Thermal Performances and Multi-Criteria Design Approaches," Energies, MDPI, vol. 13(9), pages 1-39, May.
    21. Khachatryan, Hayk & Suh, Dong Hee & Xu, Wan & Useche, Pilar & Dukes, Michael D., 2019. "Towards sustainable water management: Preferences and willingness to pay for smart landscape irrigation technologies," Land Use Policy, Elsevier, vol. 85(C), pages 33-41.

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    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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