The Value of ‘Green:’ Evidence from the First Mandatory Residential Green Building Program
37 Pages Posted: 20 Jul 2011
Date Written: December 9, 2010
There has been recent interest in green building and development practices and research. Resulting from growing environmental awareness and concerns, mandatory residential green building programs have been implemented nationally at the municipal level and Texas has passed legislation to create a statewide program. However, the impact of greenness on residential property values has not been rigorously evaluated. This study examines residential transaction prices in two cities and finds a statistically significant premium associated with “green” properties. Additionally, there is evidence of a larger premium associated with green properties located in Frisco, Texas, the nation’s first mandatory residential green building program.
Keywords: Green Development, Mandatory Residential Green Building Program, Real Estate Valuation, Hedonic Model
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