What is the Value of 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.”
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