Highlights
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We investigated the influence of surrounding forest density on house prices in the wildland-urban interface (WUI) in four Western U.S. communities with high wildfire risk.
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We found that high forest density at the more immediate level (100 m-radius buffer) was capitalized in WUI house prices as a net disamenity.
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In contrast, we found high forest density to be capitalized as a net amenity when considering a broader 500 m-radius buffer around houses.
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Incomplete information concerning wildfire risk and federal subsidies in the form of fire suppression were isolated as primary forms of market failure.