Study Reveals Green Homes Sell for 9% More
The Study on Green Homes
A study conducted by UCLA and UC Berkeley included houses that were labeled green by Energy Star, GreenPoint Rated and LEED. All these three are rating systems that label homes with the green certification. In order to get certified each one of these rating systems has their own specific criteria that has to be met. The criteria include ceilings that are well insulated and energy efficient lighting.
Nils Kok, one of the researchers from the study and also a professor at UC Berkeley stated that it is the first systematic evidence of green label home’s financial value in the marketplace. He added that green labels tend to influence and inform the opinions of consumers.
When non-green labeled homes are compared to green labeled homes, the selling price of the latter is 9 percent more than the former. The age, size and location of the homes were controlled so that all homes were compared fairly. The data included 1.6 million homes that were sold over the last 5 years.
The average price of a home in California is $400,000, but a green label increased that amount by $34,800 on an average. Green homes will be of higher value in areas like Central Valley and Santa Cruz, stated Kok.
Promotional Reusable Bags and Now Green Homes in California
Kok added that consumers are smart when it comes to pricing of green homes and the advantages they give in terms of being extremely energy efficient. The go green ideology is also a great motivating factor for most consumers.
According to real estate agents in California, the clientele that opt for green homes are usually more forward thinking. Young families are also choosing green homes for increased health safety of their children. For instance, parents do not want a house with leaky air ducts that can get dust into the lungs of their children.
California has recently been witnessing a lot of changes in terms of environmental awareness. A voluntary ban on plastic bags is likely to become a permanent one. Such bans are increasing the number of eco-friendly promotional items that are seen all over California.