Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/331889 
Year of Publication: 
2025
Series/Report no.: 
IWH Discussion Papers No. 21/2025
Publisher: 
Halle Institute for Economic Research (IWH), Halle (Saale)
Abstract: 
We study how and why local biodiversity affects residential property values. Leveraging remotely sensed greenness indicators and a novel dataset of granular property listings, we examine how changes in vegetation load on real estate prices. Hikes in greenness are associated with higher listing prices, fewer properties listed, and reduced liquidity in housing markets. These results suggest that price hikes in housing markets are driven by supply-side constraints instead of a "greenium" that buyers might be willing to pay due to innate preferences. Exogenous zoning shocks to foster biodiversity corroborate the presence of supply side constraints as price drivers in residential housing markets. Our findings emphasize the need to calibrate biodiversity and (social) housing policy objectives more explicitly.
Subjects: 
biodiversity
house prices
remote sensing
risk
JEL: 
Q51
Q57
Q58
R31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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