Certified Homes Yield a Price Premium

In 2007, the Portland Regional Multiple Listing Service (“RMLS”) began tracking sales of homes with a green certification such as Energy Star, LEED for Homes, or Earth Advantage New Homes. The Earth Advantage Institute, an Oregon-based non-profit doing work in the green building sector, annually reviews this information in order to glean home valuation trends.

Specifically, Earth Advantage found that existing homes with a green certification sold for 30% more than homes without such a certification. Earth Advantage also found that new homes with a green certification sold for 8% more than new homes without a certification.

The research is based on sales between May 1, 2010 and April 30, 2011 in Multnomah, Clackamas, Columbia, and Washington Counties in Oregon, and Clark County in Washington. While there are differences in the various counties, the data supports the notion that new and existing homes with a green certification have higher sale values.

In addition, Earth Advantage found that of 2,237 new homes sold in the last year in the Portland RMLS area, 408 of those homes were certified to some green standard.  Thus, the Portland area is seeing about 18-20% market share of certified new homes and these homes all have a sizable price premium.

There is one big thing to keep in mind.  The amounts are based on averages of all homes in the county, not comparable properties, and a larger number of higher priced green homes may raise the averages.  But as a point of reference, the research indicates that homes with certification yield a price premium when sold.

[+] Read the report summary by Earth Advantage Institute.

Credits: Earth Advantage Institute (tables).

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  • http://www.facebook.com/people/NewHomes-America/100001237551415 NewHomes America

    The plus side of new homes rather than used homes is that they have new everything. Green. New Appliances energy efficient and saves money. In addition, there is a new wave of builder’s rebates, where a new home buyer can get percent of the purchase price. Example: http://newhomesamerica.com is a directory of builders that let the home buyer get 1.25 rebate of their new home. If I have a choice, get a new home, like a new car and get money back too. Don’t have to wait a year for a tax credit or other incentive programs.

  • Gordon

    At last, an authoritative study that demonstrates a value premium for sustainably built real estate. Sustain Worldwide’s members and executive http://www.sustainworldwide.com/ salute Earth Advantage Institute’s rigour in compiling the data, and Jetson Green for publishing it. 

  • http://bruteforcecollaborative.com/ mike eliason

    saw a presentation recently where the listings in seattle apparently yielded similar results – green houses sold faster and for higher price than non-green houses of similar size/location over last 4-5 years.

    • http://www.GreenDreamGroup.com/ Grace Lunsford

      Sarah Coulter will be presenting on this in Wheeling IL at the USGBC- RGBC meeting at Terrazo & Marble Supply 77 S. Wheeling Road- Feb. 15th 5:30-7:30, and you need to register through USGBC  I saw her presentation at the B4 conference in Schaumburg and she shared a lot of this information and more.  I’m really excited for Doc verification by certified professional.

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