The Market Value of Eco-Friendly Properties
In today’s real estate market, sustainable design can significantly increase the value of a property. Eco-friendly homes are regularly listed and sold at higher prices than conventional houses. Energy efficient or high performance properties generally cost more to build, but a homeowner can make up the cost of construction when they sell their place.
According to a study of the real estate market in Washington D.C., green design residences average higher final sales prices than traditionally built ones. From 2008 to 2013, eco-friendly houses sold for 23% more than conventional homes; buyers are willing to pay more for sustainability because they recognize the long-term economic and environmental benefits. The research also suggests that demand for energy efficient residential listings is on the rise in the city, with more people interested in green design than in previous years.
Outside of the nation’s capital, similar trends can be seen across the country. Researchers in California found that green certified single-family residences sold for almost 9% more than houses without an official label. In areas of the state where the climate is warmest, realty values for eco-friendly properties are the highest. The study also determined that the market premium of sustainable homes more than made up for the cost of their development.
There is a desire for eco-friendly houses in Colorado, too. The state’s competitive real estate market, which currently has a low inventory of homes (and many eager buyers), would benefit from more green listings. In Boulder, where environmental awareness is a major aspect of the city’s culture, sustainable architecture is particularly in high demand. Buyers are specifically interested in luxury properties offering both smart home and green design features. Affluent Boulder residents and newcomers are willing to invest more money in houses that are both technologically and ecologically innovative.
Popular eco-friendly design features, which can increase the value of a property, include passive solar design, solar panels, ultra-efficient windows, Energy Star cooling and heating systems, high performing appliances, and the use of refurbished or recycled materials. Green design certification programs like LEED and NGBS can also raise the selling price of a house.
Many homeowners and buyers now consider building or purchasing energy efficient or green certified properties as smart investments. People are becoming more concerned with sustainable design and interested in eco-friendly housing, as awareness about the effects of climate change grows.
Environmentally informed buyers in Boulder County will continue to increase the demand for and value of high performance homes. If you are interested in building your own custom, eco-friendly residence, contact our firm for assistance: firstname.lastname@example.org.