Selling Energy Efficiency to Reluctant Americans

The real estate industry has done an excellent job of pounding into the collective consciousness that we will improve resale value by upgrading the look of our kitchens and bathrooms. The remodeling industry simply has not done a good enough job of pounding into the collective consciousness that we will improve resale value by upgrading the energy efficiency of our homes. And that is, in fact, true.

A recent California Berkeley/UCLA study of 1.6 million home transactions found that green labeling improved selling price. Controlling for all other factors such as location, school district, crime rate, time period of sale, views, and amenities, researchers found the 4,321 homes sold with Energy Star, LEED, or GreenPoint Rated labels commanded an average price premium of 9 percent.