Green Labels Boost Real Estate Values


Buildings that are marked with an Energy Star or another type of green label have higher real estate rankings than buildings or homes that do not. This is just the way that it is. A lot of people, however, find themselves wondering why exactly energy efficient buildings are worth more. The answer to this is a bit complicated, but simple all at the same time. Take time to think. Would you rather buy a building that is going to cost you less in utility bills or would you rather purchase a building or home that will cost less in these bills? The answer seems pretty obvious. While there are a million and one perks associated with green buildings, there are a few negative drawbacks to the equation as well.

Paying More for Green Labeled Buildings

Buildings constructed with sustainable resources and are energy efficient tend to cost a lot more to construct than the typical building or home. These homes may cost more in the short term, but in the long term these homes and buildings can help owners save an enormous amount of money. LEED and Energy Star labeled buildings are worth three percent more per square foot than buildings that are not as energy efficient. These numbers are simply shocking. Another reason why green labeled buildings are rising in popularity is due to the fact that these buildings or homes are worth a whopping sixteen percent more than typical buildings and homes when sold.

Green Labeled Buildings Have Surprising Statistics

A simple green label can add a nine percent premium increase compared to non-energy efficient buildings.  Green labeled homes boost property values by leaps and bounds. When it comes right down to it, energy efficiency seems to be the right choice in adding to the value of homes and other buildings. Buildings that are energy efficient have a twenty two percent higher rate of rent. In the city of San Francisco, California alone there are sixty three million square feet of property that has a green label from Energy Star or other reputable source.

That is an impressive thirty five percent of the buildings in the city. Companies and homeowners are willing to shell out the extra money it takes to purchase a building or home that will ultimately save them money in the long run. You would be surprised how many home buyers or companies on the prowl for office space will pay more for a green label.

The High Cost of Green Construction Buildings

The cost of green construction buildings is considerably higher. This will affect many different industries, but will ultimately help dramatically reduce the size of the carbon footprint left behind by Generation X. The real estate market has seriously been altered for the course of history with green labeled buildings. These buildings may cost more to construct and more to purchase, but they eventually pay for themselves with the energy savings they are capable of. There are three basic well known green labels.

These green labels are Energy Star, LEED, and Green Point Rated. Many buildings in California have one or more of these ratings. Soon, there will be just as many green labeled buildings across the country as there are in San Francisco, California. Both commercial and residential buildings are going green. Green certified buildings are becoming more and more common. The real estate market is expected to improve thanks to the sale of energy efficient homes and buildings. The benefits that energy efficient buildings can provide are too numerous to mention. Make your building or home more energy efficient to improve the sale price.


Author Bio:

Jason Phillips has written many times for going green and environmentalism. He also writes on real estate topics. His latest topic was buy my house fast and was really appreciated.

Clay Miller
the authorClay Miller
I am the creator/writer of and I'm an advocate for oceans, beaches, state parks. I enjoy all things outdoors (e.g. running, golf, gardening, hiking, etc.) I am a graduate of the University of Kentucky (Go Wildcats!!). I'm also a huge fan of the Pittsburgh Steelers. I was born and raised in the beautiful state of Kentucky.

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