University of California researchers found that green certified, single-family homes sold for $34,800 more or 9 percent more than comparable non-green certified homes.
Recent studies affirm earlier studies indicating that green features in a home can boost sale prices. A recent University of California research study compared “green” homes to non-green homes. According to The U.S. Green Building Council (USGBC) which reported on the findings: “University of California researchers found that green certified, single-family homes sold for $34,800 more or 9 percent more than comparable non-green-certified homes.”
UC researchers compared 1.6 million home sales from 2007 to 2012 to ascertain if “green” really helped homeowners net more at resale. Not only did the results show the 9 percent edge, researchers have given the outcomes a label: the “Prius effect,” since the cities in the study with the highest sales prices of green homes also reported the highest sales of electric vehicles. Environmentally conscious consumers of cars seem to put more “green” into their homes. The reward is that those investments pay off at resale in the form of dollars “green” that you can take to the bank.
Robert Tomczak, President of Hi-Tech Building Systems said: “These findings demonstrate exactly what our builders and homeowners tell us. In the eyes of certain investment-smart consumers, “green” homes are increasingly becoming a status symbol, a source of homeowner pride.”
Home Resale Value
Earlier, in Seattle and Portland, studies found that “green” homes sell for more and remain on the market for fewer days. In the Seattle study, using 2007-2010 data, green-certified homes sold for 22 percent more per square foot and spent 12 percent less time on the market. In Portland, using 2009-2010 data, green-certified pre-owned homes sold for 23 percent more than non-green-certified homes.
Another motivator might be the expected cost savings on utility bills. Tomczak noted: “On a monthly basis, the cost of buying a green-certified home is equal to buying a non-green-certified one. However, over the long haul, you’ll pay a much lower monthly water and power bill. You can pay a little more up-front an average of 5-6 percent and deduct the mortgage interest on that amount or pay more to the electric company for which you cannot deduct it. And you can get more when you are ready to sell the “green” home. It’s a sound investment.”