by Rona Fried, via Sustainable Business
Having a green certified home adds 9% to its appraised sales value in California, finds a new study.
The study is the first rigorous, large-scale economic analysis of the value of green home labels in California and was conducted by state university professors.
Researchers conducted a pricing analysis of all 1.6 million single-family home sales in California from 2007-2012, controlling for all other variables that typically influence selling price, such as location, size, age and amenities.
They documented that homes labeled with Energy Star, LEED or Greenpoint Rated (California’s label) sell for a premium of 9% compared to average similar homes.
The average sales price of a non-certified California home is $400,000. Green certification raises the price by more than $34,800.
Interesting that the sales premium is greater than the cost of the green features people are paying for and it’s greater than resulting utility savings. The most common green features are insulation and air sealing of attic and walls, weather stripping and efficient HVAC – none of which are particularly expensive.
The authors conclude that part of the premium is the certification itself – the premium is highest in ...