It was only a matter of time for the American housing industry to catch up to the rest of the world’s energy conservation consciousness. According to Susan Carpenter of the LA Times, houses in California that were labeled as “green” or environmentally-friendly sold for higher than their list price. UC Berkeley and UCLA researchers, Matthew Kahn and Nils Kok, discovered California homes labeled as “green” were sold for 8.7% more than their counterparts.
So, is it worth it to invest in environmental friendly technologies now?
Matthew Kahn, one of the researchers, developed a criteria for a house to be “green labeled.” The building must be certified “green” by either Energy Star, LEED or Greenpoint Rated.
Susan Carpenter stipulated that it would take $10,000 in improvements that are environmentally-friendly and energy conservation to be certified as green. Based on her stipulation, an investment of 2.5% could yield an 8.7% increase in sales prices.
Right now, this is the case in California. It is likely only a matter of time before the trend of “green” and environmentally-friendly market adoption spreads to other areas of the U.S., much like the automobile industry did many years ago.
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Michael Hobbs, PahRoo Appraisal & Consultancy
Immediate Employment Opportunity: Chicago or Suburbs Certified Real Estate Appraiser, compensation $50,000 - $85,000