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Researchers from the University of California, Berkeley and the University of California, Los Angeles have released a new study on the economic value of green home labels in the California residential marketplace.
"The Value of Green Labels in the California Housing Market" is the first rigorous, large-scale independent economic analysis of the value of green home labels in California.
Led by researchers Nils Kok, visiting professor at the University of California, Berkeley, and Matthew Kahn, professor at the Institute of the Environment, Department of Public Policy and Department of Economics at the University of California, Los Angeles, the study examined data on the 1.6 million single-family homes sold between 2007 and 2012 in California. Of these homes, approximately 4,300 were certified with green home labels from Energy Star, GreenPoint Rated or LEED for Homes.
According to a release, key findings of "The Value of Green Labels in the California Housing Market":
-A green home label adds an average 9 percent price premium for single-family homes in California.
-Based on the average California home price of $400,000, homes with a green label sell for an average of $34,800 more than comparable homes without a green label.
-This study yields two key insights into the effect of green labels on property values:
1. The price premium associated with a green label varies considerably from region to region in California, and is highest...