Studies conducted since the early 1970's have consistently concluded that energy-efficient homes earn a higher resale price than average homes. This means that purchasing an #settings.esLogo# qualified new home isn't just a smart investment today, but it will also pay significant dividends in the future.
|Time Period||Key Finding on Increased Value|
|1970-75||The 1974 spike in relative cost of fuel oil raised the price differential between gas- and oil-heated houses to $761 in 1974 and up to $4,597 in the first half of 1975.|
|1971-78||A one-inch increase in wall insulation increased home value by $1.90 per square foot; a one-inch increase in ceiling insulation increased home value by $3.37 per square foot. High quality (energy-efficient windows) increased home value by $1.63 per square foot.|
|1978||Home value increased by about $20.73 for every $1.00 decrease in annual fuel bills.|
|1978-79||Value of energy-efficient homes (with lower structural heat loss) was $3,248 higher than inefficient homes.|
|1980||Home value increased by $2,510 for each one unit increase in energy efficiency.|
|1982||Home value increased by $11.63 per $1.00 decrease in fuel expenditures needed to maintain a house at 65o F in an average heating season.|
|1983-85||Home value increased by $12.52 per $1.00 decrease in electric bills, consistent with home buyers discounting savings at after-tax mortgage interest rate.|
1 Halvorsen and Pollakowski. "The Effect of Fuel Prices on House Prices." Urban Studies, Vol. 18, No. 2, 1981, pp. 205-211.
2 Corgel, Goebel, and Wade. "Measuring Energy Efficiency for Selection and Adjustment of Comparable Sales." The Appraisal Journal, 1982, pp 71-78.
3 Johnson and Kaserman. "Housing Market Capitalization of Energy-Saving Durable Good Investments." Economic Inquiry, Vol. XXI, July 1983, pp. 374-386.
4 Laquatra. "Housing Market Capitalization of Thermal Integrity." Energy Economics, Vol. 8, No. 3, 1986, pp.134-138.
5 Longstreth. "Impact of Consumers' Personal Characteristics on Hedonic Prices of Conserving Durables." Energy, Vol. 11, No. 9, 1986, pp. 893-905.
6 Dinan and Miranowski. "Estimating the Implicit Price of Energy Efficiency Improvements in the Residential Housing Market: a Hedonic Approach." Journal of Urban Economics, No. 25, 1986, pp. 52-67.
7 Horowitz and Haeri. "Economic Efficiency versus Energy Efficiency." Energy Economics, April 1990, pp. 122-131.