2012 Study Findings Could Translate to Big Savings for Illinois Home Performance Participants
According to a recent large study in California, homes that earn “green” labels such as ENERGY STAR, LEED, and GreenPoint Rated command an average 9% higher sales price than other comparable homes in their areas.
Researchers analyzed 1.6 million homes that were sold in California between 2007 and 2012, controlling for other variables that influence home prices such as location, size, and the presence of air conditioning or swimming pools. The average price of a non-labeled California home is $400,000, and the 9% price premium for green-certified homes puts their average value around $434,800 – an added value of tens of thousands of dollars. The price premium on green labeled homes is higher in regions of California that have hotter climates, suggesting that homeowners value green labels in these areas due to the high energy costs associated with cooling these homes.
Illinois residents, too, can earn third party certifications for making energy efficiency improvements to their homes. By participating in Illinois Home Performance with ENERGY STAR, a statewide effort coordinated by MEEA to help homeowners improve the comfort, value, safety, and efficiency of their existing homes, homeowners can receive IHP Silver or Gold certificates issued by Illinois’ state energy office, DCEO. These certificates clearly identify the type of energy efficiency improvements made to the home and provide the confidence that these improvements were made by a vetted and qualified IHP Participating Contractor.
Additionally, these certificates can be directly uploaded to the Chicago area multiple listing service when homeowners prepare to sell their homes, capturing the value of the improvements and decreasing overall market time. To find out how to reduce your energy bills, take advantage of limited time rebates up to $1,750, and earn an Illinois Home Performance Silver or Gold Certificate, visit www.illinoishomeperformance.org.
