Green Homes Price Premium

Green Labels add Value to Homes

More Evidence of Green Value

A recent analysis of homes done by UCLA Berkley researchers found that a green labeled home (LEED for Homes, NAHB Green, Energy Star, etc) had a mearurably higher value than non-green (standard) homes.

Green Homes Price Premium

Researchers from UC Berkeley and UCLA have found that green home labels typically add almost 9% to the value of a California home.

The “Value of Green Labels in the California Housing Market” study found that a typical California home valued at $400,000 sells for an average of 8.7%, or $34,800, more when it has a green certification label.

The study was conducted by researchers with UC Berkeley and UCLA who hoped to answer the question: Does the investment in an energy-efficient home pay off during resale? The short answer is yes.

According to the study, price premiums resulting from green certification were closer to 12% in hotter parts of the state. It also found the premiums were strongly correlated with an area’s environmental ideology as measured by the number of hybrid vehicle registrations — a phenomenon dubbed “the Prius effect” by visiting UC Berkeley professor Nils Kok, who led the study.

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Just as “people sometimes buy a Toyota Prius not just because of the fact that it’s more efficient but because of environmental virtue,” Kok said, “people might buy a green home because of ideology. In areas where the penetration of hybrid vehicles is higher, we find the premium paid for green homes is higher as well.”

Even though buyers of green homes were likely to save an average of $700 in energy bills annually, “consumers value aspects other than just energy savings alone when purchasing a green home,” said Kok, who cited intangibles such as enhanced indoor air quality and better insulation.

The study estimated that the cost of making a home 35% more efficient was $10,000, “so the benefit of green homes far outweighs the cost,” Kok said.

Green home labels seem to be increasing in value. Kok noted that green-label homes sold in the latter part of the five-year study period “seemed to have gone up relative to the beginning of the sample period.”

What about areas outside California?  Well increasingly as more regional areas add green MLS fields that support identification of green home features, it is becoming easier for real estate appraisers to identify the local impact on market value. Learn more at our Green Real Estate Toolkit.

Reprinted from LA Times Article

 

Despite Heat & Drought, Michigan LEED Platinum Home Stays Cool & Refreshed

“We installed our original cooling system in July 2010 and it has worked reasonably well, but over the last few weeks we’ve had a hot spell with daytime temperatures mostly in the upper 90’s and well over 100 degrees Fahrenheit for a few days. That’s normal in some parts of the world but in Michigan, we consider that HOT! Over two weeks of unusually hot weather the house reached 77 degrees at the warmest point when it was 105 outside, which is actually pretty good since we’re cooling the entire house for about 30 cents per day….The Systems total cooling capacity is very small however, so it is practical only because our total cooling load is very small due to the extreme level of insulation in the house, because our south-facing windows have carefully designed overhangs that block direct sun in mid summer, and because we use very efficient appliances that add very little additional heat to the house.

“Since we’ve had a hot, dry spell for the last 4 weeks we have been using a lot of cistern water for the gardens, and we’re down to about 36 inches or 4,300 gallons, out of a total capacity of 12,000 gallons. Hopefully we’ll get some significant rain soon to replenish our irrigation water supply, but we can refill it from the well if necessary.” – Jay & Liz McClellan.

Learn more at

http://www.brainright.com/OurHouse/Construction/CoolingSystem/enhanced.shtml

2012 IECC

2012 IECC Energy Code vs Green Home Certifications

2012 IECCMany states are in the process of adopting in whole or with modifications the 2012 International Energy Conservation Code (IECC).  This new code raises the bar in construction design for residential and commercial structures, and as a result, architects / engineers / contractors building to the new code will be affordably offer a choice to their clients for pursuing several above-code certifications such as Energy Star and LEED without too much additional effort or cost.

The new national energy code includes mandatory blower-door testing for building air leakage (less than <3.0 ACH at 50 pascals), which will measure how well contractors have sealed up penetrations between the outdoors and indoor conditioned space. This testing will be required for all projects permitted after the new code goes into effect. Some states have made modifications to the adopted code, such as Illinois which has changed the ACH rate to 5.0 ACH @ 50.  View our archived July 12 webinar to learn more about IL Energy Code changes.

Other aspects of the 2012 IECC such as requiring hot water pipe insulation and mechanical ventilation are new items that projects will need to implement.  Learn more on a free webinar held Thursday July 12.

So, how do national IECC 2012 requirements relate to voluntary above-code programs like Energy Star, LEED and Passive House?  Pretty well actually. has assembled a matrix identifying several energy-related items as written in the code and indicated what the impact or requirements would be in one of these above-code third-party green certification programs. Download national comparison matrix as PDF.
(Illinois-specific modifications are shown in the image below)

What does this mean?  Well just by building to the new code, these projects will be very close to meeting the Energy Star for Homes program requirements, and will score very well in programs that require Energy Star version 3 such as LEED or Green Communities. Other green programs that don’t require Energy Star, such as National Green Building Standard or local green home programs will also heavily reward these projects.

LEED for Homes will be requiring Energy Star version 3 beginning at the end of the year, so right now a project can still earn LEED certification by building to Energy Star version 2 requirements which should be easily met on any home that meets IECC 2012.

Take advantage of this sweet spot and earn market recognition by attending a LEED workshop or sign up to earn LEED certification today!

Smartphones Dial Up Energy-Efficiency Opportunities

Already an indispensable aspect of many people’s lives, smartphones now hold the promise of helping to cut in-home energy consumption and costs. Consumers are well aware that mobile technology allows them to pay bills online, watch movies, check in at the airport and, of course, play “Angry Birds.” So why not also use a smartphone to remotely control appliances and adjust the thermostat at home? Used in conjunction with an eco-friendly home, mobile devices can go a long way toward residential energy efficiency.

Mobile trends indicate a turn toward green sustainability. For example, the national Green Button program is a public-private partnership that aims to give electricity customers direct access to usage data from their utility companies. The partners say the program allows consumers to better monitor their green efforts and encourages entrepreneurs to develop innovative eco-friendly technology.
To further the Green Button initiative, the U.S. Department of Energy awarded cash prizes in May and June 2012 as part of its Apps for Energycompetition. The contest recognizes software developers who create apps to help consumers make use of Green Button data. The grand prize for Best Overall Application went to Leafully, which seeks to educate consumers on the economic and environmental impact of their energy usage.

There are a growing number of eco-related apps and other mobile products available for consumers seeking to shrink their carbon footprint.

 Smart Thermostats: Today’s thermostats aren’t just programmable, they are also teachable. By detecting motion, they can adapt to a household’s comings and goings while gathering data such as humidity and ambient light levels to find the most energy-efficient way to keep a house at its optimal temperature. Nest and ecobee are among the smart thermostat makers that offer apps for controlling home temperatures remotely.
 Controlling Appliances: General Electric’s Nucleus energy manager works in conjunction with a smart meter to provide homeowners with information on electricity consumption and costs. With the Control4 home control system, users can remotely synchronize control of appliances and other electronic devices, from window shades to a coffeemaker and a sound system.

 Empowering Power Strips: Homeowners have numerous options for managing energy use through smart power strips. Products such as the UFO Power Center and the EnergyHub strip allow homeowners to track the energy use of appliances and program and control them remotely, including via smartphones and other mobile devices.

 Energy Efficient Lighting: Even in the most energy-efficient of homes, light bulbs will burn out. Light Bulb Finder allows customers to locate the right bulb to match their preferences and light fixtures. The app also will place orders with the cheapest vendor and calculate how long it will take for the bulb to pay for itself in electricity savings.

 Social Energy App: Facebook and the Natural Resources Defense Council have teamed with Opower to offer an app that allows users to compare their energy usage against that of similar homes and that of their friends. They also can share tips for cutting costs and compete to achieve energy-saving goals.

  • Also imagine a Green Home Remodeling app that allows you to check off measures to green your home beyond energy efficiency, gain points, compete with your friends and certify under a Green Rating system.  Contact for more details (Info@allianceES.org)

Whether consumers are motivated to “go green” by money, conscience or peer pressure – or some combination of those factors – smartphones can work in tandem with sustainable home designs to help them conserve energy and cut costs.
BIO

This guest post was provided by Dean Vella who writes about supply chain management and sustainability training for University Alliance, a division of Bisk Education Inc.