According to a recent article by Kenneth R. Harney posted on latimes.com:
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
Angel Franco/ The New York Times
According to a recent story in The New York Times, Jamestown Properties, a commercial real estate investment company based in Germany and Atlanta, is going green on all of nearly 4 billion dollars worth of U.S. properties. They will be spending 3 to 10 million dollars on these green retrofits. Managing director and chief operations officer, Matt M Bonfman says the executives at Jamestown believe that real estate will be increasingly valued for sustainability and environmental impact. Sustainability “will become a key factor to the point where, if you haven’t taken environmental measures, you will have trouble, whether it’s leasing your office building or what have you.” The company expects their investment will be repaid through energy savings, higher resale values, and the ability to charge higher rents. Just another indicator that a green home or office retrofit is not only good for the world, but might also be good for your pocketbook!