The purpose of this paper is to disentangle the often-overlooked relationship between biodiversity, measured by bird abundance and species richness, and residential property values.
While conventional determinants such as location, amenities and economic conditions typically shape house prices, the ecological characteristics of a neighborhood – including its biological abundance and species richness – can also exert a significant influence. By integrating novel citizen science eBird data with housing sales records from the Hampton Roads region of Virginia, the authors employed a hedonic pricing model and a quantile regression approach to examine the impact of biodiversity on house prices.
The analysis reveals a statistically significant positive association between bird biodiversity and house prices, with the strongest effects observed in close proximity to the properties. While avian presence at greater distances still influences property values, its impact diminishes with distance. The quantile regression results suggest that bird abundance has a more pronounced effect on higher-priced residences compared to lower-priced ones. It was also found that the relationship between bird biodiversity and house prices is heterogeneous across several dimensions, including bird species type, housing type and neighborhood characteristics.
This research sheds light on the role of ecological amenities in shaping housing market dynamics. To the best of the authors’ knowledge, it is the first comprehensive study to investigate the impact of biodiversity, measured by bird abundance and species richness, on house prices. The findings contribute to a deeper understanding of how ecological services provided by birds, along with associated human leisure activities, interact with economic factors in the housing market.
