When it comes to buying real estate, are people more interested in being “green” or in saving green?
A recent study in the Appraisal Journal, a trade-association publication, suggests many house hunters could be more concerned with the latter.
Looking at roughly 66,000 home sales in the San Antonio area between October 2008 and September 2013, a team led by University of Texas at San Antonio professor Thomas Thomson examined the relationship between a home’s “green” features and its selling price.
The researchers found that houses classified by the multiple listing service as having a “green” designation such as LEED certification enjoyed a modest 0.7% boost in sales price compared with comparable homes without such a certification.
Homes advertising a specific feature designated in MLS as “green,” like a low-flow toilet or an enhanced air-filtration system, meanwhile, saw a 1.7% price increase.
The largest price bump, though, was reserved for homes listed as having “energy efficient” features such as high-efficiency HVAC systems or dual pane windows. Houses with these amenities sold for 5.8% more than comparable homes without them.
The findings, Prof. Thomson says, suggest that while environmental concerns influence home buying decisions to an extent, at the end of the day people are most interested in features that will impact their bottom line.
Source: When ‘Eco’ Isn’t Economic – WSJ