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Materials & Technology

Study: LEED and Energy Star homes sell for more

Tue, 10/09/2012 - 14:25

A new study has shed light on a trend that many in the real estate industry knew of, but lacked empirical evidence to back their claims.
 
 
The idea that green homes could sell for more than traditional residences was what UC Berkeley and UCLA researchers sought to determine, so they examined properties in California to find out the difference in price between the two types of real estate.
 
According to CEPro, economists from the two universities found that green homes labeled with LEED for Homes, Energy Star or GreenPoint sell for more money than residences that lack these certifications.
 
 
The study, "The Value of Green Labels in the California Housing Market," outlined how green homes brought an average of $34,800 to the seller, roughly 9 percent more than other houses on the market.
 
"This paper provides the first systematic evidence on the effects of green labels attesting to the energy efficiency and sustainability of homes on consumer choice," says researcher Nils Kok. "The results show that both environmental ideology and local climatic conditions play a role in explaining the variation in the green premium across geographies."
 
 
According to the news outlet, more than 1.6 single-family homes sales in California from 2007 to 2012 were studied, and the residences with green products and technology sold for higher than the other houses that were examined.
 
"This paper provides the first systematic evidence on the effects of green labels attesting to the energy efficiency and sustainability of homes on consumer choice," said researcher Nils Kok.
 
 
Including technology like radiant heating can help to secure one of these valuable certifications, and homeowners can also benefit from lower monthly energy bills. 

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