Posted on September 15, 2015 by KC Gonzalez

Green Housing

Green Housing

Green Housing Do energy efficient designations such as Energy Star homes and features such as double-pane windows and low flow toilets increase the value of a home?

According to Thomas Thomson , the Quincy Lee Distinguished Professor in Real Estate and Finance, and Anjelita Cadena , Ph.D. ’13, assistant professor at the University of North Texas, they do.

The researchers studied 66,000 home sales over a five-year period in San Antonio to evaluate the extent green components add a premium to a house’s selling price. They found that green designations increased selling prices by 1 percent, green features such as drought tolerant plants and irrigation systems increased selling prices by 2 percent and energy efficient features such as Energy Star appliances, windows and HVAC systems raised selling prices by 6 percent.

“We are continuing data collection on this project and have two more recent years of data,” said Thomson, whose work appeared in the Appraisal Journal . “We’ll be looking to see if there is an increasing value to green over time, whether green houses sell faster and if the number of green features increases value.”

Wendy Frost—

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— KC Gonzalez