ENERGY STARÂ® Rating Impacts Market Advantage for New Homes
The North Carolina Energy Efficiency Alliance recently completed a market impact study comparing a random sampling of ENERGY STAR homes against homes with no building certifications that were appraised as similar as possible to the ENERGY STAR homes by a third-party appraisal company.
– ENERGY STAR Homes were found to have a statistically significant market advantage compared to similar code-built homes.
– ENERGY STAR homes sold for significantly higher sales prices, sold for significant higher price per square foot, and sold in significantly fewer days.
– ENERGY STAR Homes sold for a greater proportion of their list price. (This result was not found to be statistically significant.)
This 52-page study, titled Market Impacts of ENERGY STARÂ® Qualification for New HomesÂ (by William Pflegar, Chuck Perry, Nicholas Hurst and Jeff Tiller), was conducted to demonstrate the benefits of home certifications, and to provide new information on the impact that an ENERGY STARÂ® qualification can add to the value of a home beyond just that of monthly energy savings.
The study proposed 4 specific questions designed to elicit whether ENERGY STAR Homes have a market advantage:
1. Do ENERGY STAR qualified homes sell for higher prices compared to similar code built homes?
2. Do ENERGY STAR qualified homes sell for a greater percentage of their list price compared to similar code-built homes?
3. Do ENERGY STAR qualified homes sell for a higher price per square foot compared to similar code-built homes?
4. Do ENERGY STAR qualified homes sell faster (fewer days on the market) compared to similar code built homes?
So what does this mean for the home buyer? The results indicated by this study suggest that ENERGY STAR Homes have a competitive market advantage compared to similar code-built homes. This multidimensional advantage is substantial enough to suggest to home buyers that the investment in ENERGY STAR certified homes is more than worthwhile.