A new study by researchers at UCLA and UC Berkeley has found that having an environmentally friendly home in California can increase the sale price by about 9 percent.
The researchers analyzed data on 1.6 million single-family homes sold between 2007 and 2012, with approximately 4300 of them being certified by Energy Star, LEEDS for Homes or GreenPoint Rated. Based on an average selling price of $400,000, the study found that green certified homes sold for about $34,800 more than the rest.
“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, as measured by the rate of hybrid registrations,” said researcher Nils Kok in a statement. “In communities with strong environmental values, residents may see green homes as a point of pride or status symbol… It appears that a hotter local climate also provides a practical reason to value green homes. With both ideological and pragmatic reasons to go green, it’s no surprise that the popularity of these labels is rising.”
The study, entitled “The Value of Green Labels in the California Housing Market,” also touts the benefits of green homes, such as lower operational costs due to efficiency, higher quality construction and healthier indoor air quality.