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Green Homes Have Higher Resale Value
Recent research from Nils Kok, a visiting Professor at UC Berkeley, has shown that in California homes with green certification sell for 9% more on average than homes without green certification. This was based on a studying 1.6 million homes and comparing ones with certifications from LEED, Green Point Rated and Energy Star to homes without such ratings. This effect shows the continued value of investing in long term energy efficient improvements for homeowners. Not only will homeowners benefit from increased comfort and safety and lower utility bills but their homes will have a higher resale value.
This research confirms prior studies conducted in the Pacific Northwest that demonstrated on average homes with green home certifications sold for 8.5% more per square foot than similar homes without the green certification. Homes that had been verified by third party raters sold for as much as 25% more than homes without such certifications. Portland based Earth Advantage Institute has reported that in Portland homes with green certification sold for on average 12% more than similar homes without the certification.
Kok and associates already studied the effect of green certifications on office buildings. They found in a previous study that green offices had 3% higher rent and sold for 16% more than similar buildings without the green certification. That earlier research though found the effect for offices directly related to Energy Star, “We find consistent and statistically significant effects in the marketplace for the Energy Star labeled buildings”.
Hopefully more research like this will show the pragmatic benefits to upgrading a home's energy efficiency. With increased home resale value and the money saved on utility bills, the increased comfort and improved safety pays for itself. It is a win-win for homeowners.
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