In urban environments, newly planted street trees suffer from poor site conditions and limited water availability. It is challenging to provide site conditions that allow the trees to thrive in the long term, particularly under climate change. Knowledge about the hydrological properties of artificial urban planting soils related to the response of tree species-specific growth is crucial, but still lacking. Therefore, we established a three-year experimental field setup to investigate the response of nine tree species (135 individuals) to two common urban planting soils and a loamy silt reference. We determined and measured soil hydrological parameters and monitored tree growth. Our results revealed low plant available water capacities (6% and 10% v/v) and hydraulic conductivity restrictions with the drying of the sandy-textured urban planting soils. Therefore, tree species that are investing in fine root growth to extract water from dry soils might be more successful than trees that are lowering their water potential. Tree growth was overall evidently lower in the urban planting soils compared with the reference and differed between and within the species. We showed that using unfavorable planting soils causes severe, species-specific growth deficits reflecting limited above-ground carbon uptake as a consequence of low water availability.