Green homes sell for 9% premium

According to a recent article by Kenneth R. Harney posted on

A new study involving an unusually large sample of homes sold in California between 2007 and early 2012 has documented that, holding all other variables constant, a green certification label on a house adds an average 9% to its selling value. Researchers also found something they dubbed the Prius effect: Buyers in areas where consumer sentiment in support of environmental conservation is relatively high — as measured by the percentage of hybrid auto registrations in local ZIP Codes — are more willing to pay premiums for green-certified houses than buyers in areas where hybrid registrations were lower.

The study found no significant correlations between local utility rates and consumers’ willingness to pay premium prices for green-labeled homes.

The 9% average price premium from green-rated homes is roughly in line with studies conducted in Europe, where energy-efficiency labeling on houses is far more commonplace. Homes rated “A” under the European Union’s system commanded a 10% average premium in one study, while dwellings with poor ratings sold for substantial discounts.
It is well understood that greening your home is the prudent and responsible thing to do for your personal health and well-being and that of the planet, but it has been greatly debated whether or not it pays economically.  In my opinion, if you look at the broader economic impact of home building and ownership, taking into consideration all of the negative externalities (costs of production and consumption not factored into prices, such as the health impacts of exposure to toxic materials) then the economic benefits of green building are stunningly obvious.
Even without factoring in all of the more comprehensive benefits,  this study finally demonstrates that greening your home is good for your pocketbook as well as your karma ;)


So be a smart investor!   Go green with Telios Environmental.


photo credit: Alan Cleaver via photopin cc

One thought on “Green homes sell for 9% premium

  1. Very interesting! Nice to know that a green certificate is good for the planet & for the pocketbook.Hopefully this will encourage more environmentally friendly building and renovation,lk

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