Green homes sell for 9% more in California

Green homes sell for 9% more in California

Is there more green for you when you go green?

Economists from UC Berkeley and UCLA completed an analysis of  1.6 million single-family homes sold in California from 2007-2012, studying the effect of green building labels on property sale values.

The results are in: approximately 4,000 green labeled homes with Energy Star, LEED for Homes, and GreenPoint Rated labels sold for 9% more (±4%) than comparable, non-labeled homes.

The research indicates that the premium exists in hotter climates, where cooling costs are in much higher. This is combined with what is called “environmental ideology” which in most cases is measured by the rate of registration of hybrid vehicles. The two influences consumers’ buying choices.

Green homes sell for 9% more than regular homes in California and their premium is highest in the most eco-oriented areas, says a report today.

We observed a phenomenon we’ve termed the ‘Prius effect’ — a positive correlation between the value of green home labels and environmental ideology, as measured by the rate of hybrid registrations,” said co-author Nils Kok, visiting professor at the University of California, Berkeley.In these areas, residents may see green homes as “a point of pride or status symbol,” he adds.

For the entire executive summary.

The Washington Post – Energy-Efficient Homes Often Command Higher Prices.

Market Watch – Green Home Labels Add Significant Value.

 

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