Built Green ® | Master Builders Association of Pierce County

New Report Documents Superior Market Performance of Certified Homes

Price Premiums from 3 to 10 Percent in Portland and Seattle Metropolitan Areas

Posted: Jul 07, 2009

This investigative study is part of a larger regional effort conducted by nonprofit and local government organizations. These efforts have involved some of the leading green building organizations in the Pacific Northwest, including Built Green Washington, Cascadia Region Green Building Council, Earth Advantage Institute, Master Builders Association of King and Snohomish Counties, Master Builders Association of Pierce County, the Northwest Eco-Building Guild, Olympia Master Builders, and Washington State Department of Ecology.

The findings are based on an analysis that directly compares homes that were certified with appraiser-approved comparable homes. Home certifications included Earth Advantage®, ENERGY STAR®, Built Green®, and LEED® for Homes.

Certified homes in the four-county Seattle metropolitan area sold for 9.7 percent more than noncertified homes. In the five-county Portland area, homes also achieved a price premium of 3 to 5 percent more. Homes with an Earth Advantage or comparable certification also sold more quickly in the Portland metro area by about 18 days.

“This investigative research demonstrates the clear value of certified homes to homeowners and professionals in the home construction and sales industry,” said Sean Penrith, executive director of Earth Advantage Institute. “The results of this study will help us in our certification outreach efforts by supplying our constituents with specific data on the benefits of sustainable home standards.”

The report, "Certified Home Performance: Assessing the Market Impacts of Third-Party Certification on Residential Properties," also features home builder interviews and consumer surveys.

Certified Homes Sample:  The comparable property analysis was based on a sample of 92 certified homes in Portland and 68 certified homes in Seattle. For each certified home, 2 to 7 comparable homes were identified. Taylor Watkins of Watkins & Associates was the project appraiser. The comparable home methodology allowed researchers to identify sustainable certification as the primary factor impacting market performance.

The majority of the homes in the Oregon sample (90 percent) were built between 2005 and 2008, and sold for an average of $474,000. All of the homes in the Washington sample were built in 2007 or 2008, and sold for an average of $523,000.

Green Building Leaders' Efforts

This investigative study is part of a larger regional effort conducted by nonprofit and local government organizations. These efforts have involved some of the leading green building organizations in the Pacific Northwest, including Built Green Washington, Cascadia Region Green Building Council, Earth Advantage Institute, Master Builders Association of King and Snohomish Counties, Master Builders Association of Pierce County, the Northwest Eco-Building Guild, Olympia Master Builders, and Washington State Department of Ecology.

In the coming weeks, the report will be followed by the release of related research reports, including a commercial case study report to be published by Cascadia Region Green Building Council and a residential case study report to be published by the Northwest Eco-Building Guild.

The commercial case study report is available on the Cascadia Regional Green Building Web site www.cascadiagbc.org.

 
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