A recent study conducted through the partnership of the University of California Berkeley and the University of California Los Angeles found “green energy” upgrades can increase a home value between 5.5 to 9 percent. The study is one of the most extensive in the United States and offers detailed evidence of the monetary and property benefits from home energy efficiency upgrades.
One of the homes in the study insulated and air sealed their attic and walls, added shower valves, upgraded their pool pump and added weather stripping, which combined increased their home value $45,000, an increase of 6%. Additionally, they saw health benefits from their home upgrade, as well as saving an average of $2,237 in energy costs per year.
Deborah Little, the appraiser who conducted the study, concluded:
“We used methodologies beyond the typical appraisal scope, taking into account the energy efficiency benefits as well as factors such as healthier indoor air quality and sealing air leaks — a construction technique that improves the durability and effective life of a home. We ultimately determined that the many benefits of green homes do lead to higher home values in the local market.”