Hollow Trees
Hollow trees are generally trees that are either dying or dead. These trees play host to a wide range of critters, such as squirrels and different species of birds. However, hollow trees are also home to the common yellow jacket. The term "yellow jacket" has been used to refer to many types of hornets, but specifically a yellow jacket is another type of wasp most closely related to the hornet. Care should be taken to keep children from climbing these types of trees for this reason.
Tall Trees
Very tall trees can also play host to some species of hornets. For example, the bald faced hornet will usually make its nest in an attic or roof, unless a significantly high tree is available. Because the bald faced hornet's nest requires sturdy branches, the nests will not be located in the fragile top limbs, but will be high up in the tree. The nests that these wasps create are exposed, papery and can be up to a foot in diameter. The nest can hold up to 400 hornets, which have been known to swarm when the nest is threatened.
Ornamental Trees
Hornets prefer to nest in hollowed out trees or tall trees, but these wasps are very versatile and can adapt to any type of home. Even if you have a hornet nest in a tall or hollow tree, you might still notice damage to woody ornamental trees such as lilacs and dogwoods. The wasps grind up the bark of these trees to expand their nest elsewhere. Although uncommon, they may nest in these trees as well, if they are large enough.
Other Trees
Hornets might also make their homes in other trees that are located close to food sources, if such an opportunity presents itself. For example, you might find hornet nests close to exposed garbage cans or high populations of food insects that the wasps can eat. Certain species of hornets crave sweets in the fall and will locate their nests near campgrounds or garbage cans to be near the food source.