Despite the trend in home sales, green home sales have continued to increase over the past three years in Portland, Oregon. According to research by the Earth Advantage Institute, third-party certified green homes made up almost 25% of the new homes sold during 2009-2010, up from 14% in 2007 and 17% in 2008.
“As energy efficiency and healthier homes gain more attention, builders and homeowners increasingly place value on home certification,” said Sean Penrith, executive director, Earth Advantage Institute. “It is very encouraging to see the market share of certified homes continue to rise over the past three years despite the difficulties in residential markets.”
The term “certified home” refers to homes that received an Earth Advantage, Energy Star, or LEED for Homes designation, or a combined Earth Advantage/Energy Star designation. Earth Advantage is a local rating system that is roughly between Energy Star and LEED for Homes certification in terms of sustainability.
Not only are certified homes making up more of the homes-sold market, they are earning an increasing amount of money as compared to traditionally-built homes. For example, in Clackamas County, Oregon, a non-certified home with a market value of $326,300 has an equivalent value, if certified, of $$391,500. The premium paid for certification is 17%! Existing certified homes are also earning more, up to 32% in Multnomah County.
Results like this continue to show that the market for green homes is increasing, which is good news. In tough economic times, buyers are looking for efficiency and quality in their purchases. Third-party certified homes provide that much needed savings and value.
Earth Advantage Institute is a nonprofit organization that works with the building industry to help implement sustainable building practices. Its mission is to create an immediate, practical and cost-effective path to sustainability and reduction of carbon in the built environment
Photo courtesy of Earth Advantage Institute.
Happy to see green homes increasing both in sales and value. Home builders, remodelers, homeowners and buyers, please take note!