Green Labels Have Value
Economists at the University of California Berkeley and UCLA offer statistical proof that green homes labeled with LEED for Homes, Energy Star, or GreenPoint sell for more money. I decided to post this study since the neighborhood I live in, South Waterfront, focuses on LEED construction. Although the study is centered around homes in California, I have personally noted that for Portland-area “green homes”, buyers are willing to pay a premium for energy savings and environmental sustainability. In fact, I just closed on an Energy Star home last week where the “green label” was one of the key incentives for my buyer clients. The study, titled “The Value of Green Labels in the California Housing Market“, shows that green homes bring an average of $34,800, or 9% more to the seller.
The research also indicates that the price premium is influenced by local climate and environmental ideology. To reach these conclusions researchers conducted an economic analysis of 1.6 million homes sold in California between 2007 and 2012, controlling for other variable known to influence home prices in order to isolate the added value of green home labels. These controls included location, size, vintage and the presence of major amenities such as swimming pools, views and air conditioning.
To read more, see the full article here.
