Energy-efficient homes often command higher prices, study finds
Homes that meet environmental standards, such as energy efficiency and proximity to public transportation, are selling at higher prices than homes that don’t, according to a new study.
The study, conducted by researchers at UC Berkeley and UCLA, examined data on 1.6 million single-family homes sold between 2007 and 2012 in the California residential marketplace for an economic analysis of the value of green home labels.
Of the homes analyzed, 4,300 were certified with green home labels from Energy Star, GreenPoint Rated or LEED for Homes.
A green label increased the selling price of a single-family home by average of nine percent compared with non-green label homes. Another reason the price of green homes is increasing is because of an increased awareness of the “going green” ideology, the report said.
“This is the first systematic evidence of the financial value of green label homes as measured in the marketplace,” said Nils Kok, University of California professor and lead researcher in the study.
Analysts found evidence of what they have dubbed the “Prius effect” in areas where a high value was placed on a green labeled home. According to researchers, communities with a strong prior outlook to thinking “green” – as evidenced by owning a “green” vehicle such as a hybrid – residents seem more inclined to look for green home improvements to their homes.
Growing awareness about global warming and the extent of greenhouse gas emissions from the residential sector has increased attention to green building in recent years. Benefits of green homes are said to lower utility bills due to greater energy and water efficiency; higher quality construction; more comfortable and stable indoor temperatures; healthier indoor air quality; and other environmentally desirable features such as proximity to parks and shops.
It is estimated that the residential sector in United States accounts for 33 percent of its energy consumption with a total expenditure of $166 billion in 2010. Increasing the energy efficiency of housing can provide cost savings for consumers as well as help the country meet its emission reduction goals.
Topics
Share this post
Member Discussion
Recent Articles
-
Earn Your Divorce Specialist Certification at Triple Play
- November 14, 2024
- 2 min. read
“Don’t wait until the middle of a transaction to realize there are things you need to know to serve your customers better,” says Realtor® and Triple Play speaker Addie Owens.
-
Unaffordable Market Shrinks First-Time Buyers; Agents Remain Key
- November 13, 2024
- 4 min. read
“We have an all-time high of all cash buyers and an all-time low of first-time homebuyers,” noted NAR Deputy Chief Economist and Vice President of Research Dr. Jessica Lautz.
-
Recent Homebuyers Saved for Five Years on Average
- November 12, 2024
- 2 min. read
On average, recent buyers who were surveyed put down an average of 17.38% on their new home. However, 49% put down 10% or less of the purchase price.
Daily Emails
You’ll be the first to know about real estate trends and various legal happenings. Stay up-to-date by subscribing to JustListed.