‘Greening’ your home adds value, finds Californian study

Posted at July 31, 2012 » By : » Categories : News » Comments Off on ‘Greening’ your home adds value, finds Californian study

A home with a ‘green’ label can command a premium of 9% over regular one-family homes, according to a Californian study.

The research by University of California, Berkeley and the University of California, Los Angeles is the first rigorous, large-scale independent economic analysis of the value of the various green home labels in use.

Of the 1.6 million single-family homes sold between 2007 and 2012 in California, 4300 were certified with ‘green’ under the ENERGY STAR, GreenPoint Rated or LEED for Homes schemes.

The green label adds an average of $34,800 to the average California house price of $400,000, but the premium varies from region to region across the state, with hotter climates placing more value on being green.

Unsurprisingly, the premium also correlated to regions of the state where residents are more environmentally aware, as measured by the level of hybrid vehicle registrations.

“In certain regions of the state, we observed a phenomenon we’ve termed the ‘Prius effect’ — a positive correlation between the value of green home labels and environmental ideology,” says researcher Nils Kok of the University of California, Berkeley. “It appears that a hotter local climate also provides a practical reason to value green homes.”

The researchers put this difference down to the lower operational costs associated with a more efficient, green home, which becomes an even more important consideration in regions where there is greater use of air conditioning.

Green homes also benefit from higher quality construction, as the certification schemes require building materials and techniques that go beyond standard building codes, improved indoor air quality and more comfortable indoor temperatures.

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