The Value of ‘Green:’ Evidence from the First Mandatory Residential Green Building Program

37 Pages Posted: 20 Jul 2011

See all articles by Ramya R. Aroul

Ramya R. Aroul

University of Texas at Arlington - Department of Finance and Real Estate

J. Andrew Hansz

E.V. Williams Center for Real Estate

Date Written: December 9, 2010

Abstract

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

Suggested Citation

Aroul, Ramya R. and Hansz, J. Andrew, The Value of ‘Green:’ Evidence from the First Mandatory Residential Green Building Program (December 9, 2010). Journal of Real Estate Research, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1888778

Ramya R. Aroul (Contact Author)

University of Texas at Arlington - Department of Finance and Real Estate ( email )

Box 19449 UTA
Arlington, TX 76019
United States

HOME PAGE: http://omega.uta.edu/~rxa0885/

J. Andrew Hansz

E.V. Williams Center for Real Estate ( email )

Norfolk, VA 23529-0222
United States
7576833505 (Phone)

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