Is a green-certified home worth the up-front cost? For many Californians, at least according to a new study, that answer is yes.
A new study by professors from the University of California Berkeley and UCLA shows that not only is demand for green homes still high in eco-minded areas, but certified green homes sell for around 9 percent more than less environmentally-savvy homes.
The study looked at 1.6 million homes sold in California from 2007 and early 2012. There seems to be a certain community attitude associated with green living dubbed the “Prius Effect,” according to the study’s authors, in which consumers that lived in areas where support for sustainability and hybrid ownership was high were willing to pay more for green certified homes.
Though, the willingness to pay more for green certification might be a trade off for the temperate climates of California. The study found that Californians living in warmer parts of the state like those in Central Valley were more willing to factor in capitalized cost savings than their northern and coastal counterparts.
Other studies that looked at green home purchases on a smaller level concluded that green certified homes in Seattle sell for an average of 8.5 percent more than their non-certified competition, based on a sample of homes sold between September 2007 and December 2009. In Portland, Oreg., that number rises to 12 percent, based on a study conducted from May 2008 to April 2009.
Higher prices aren’t just associated with homes. According to one UC Berkeley study, offices with green certifications rent for at least 3 percent higher and sell for 16 percent more than non-certified offices.