Green Home Building in Texas: Enhancing Resale Value

Green Home Building in Texas is Good!

Let’s get to green home building in Texas! For a new study from The University of Texas at Austin and the U.S. Green Building Council (USGBC) finds that new homes in Texas built to meet green home building standards like LEED (Leadership in Energy and Environmental Design). For it’s the world’s most widely used green building rating system. They are worth an average of $25,000 more in resale value than conventional homes.

In addition, the study, “The Value of LEED Homes in the Texas Real Estate Market: A Statistical Analysis of Resale Premiums for Green Certification.

The generated image beautifully illustrates the concept of green home building in Texas and its impact on property value. Let me describe what we see: A modern, eco-friendly home stands proudly in the foreground, embodying the essence of sustainable living in the Lone Star State. The house features a sleek design with large windows that allow ample natural light, reducing the need for artificial lighting and lowering energy costs. The roof is adorned with solar panels, a key feature that not only reduces the home's carbon footprint but also significantly cuts down on energy bills. This solar installation is a prime example of the green features that can boost a home's resale value, as mentioned in the article. In the front yard, a 'For Sale' sign is prominently displayed, sporting a noticeably higher price tag. This visual cue directly relates to the study's findings that green features can add up to $25,000 to a home's resale value in Texas. The landscaping around the house showcases native Texan plants, which require less water and maintenance, aligning with sustainable gardening practices. You can spot rainwater collection barrels near the house, highlighting water conservation efforts. A small wind turbine is visible, complementing the solar panels and further emphasizing the home's commitment to renewable energy. An electric vehicle charging station in the driveway adds another layer of eco-friendliness, catering to the growing market of electric car owners. The background reveals the Austin skyline, placing this green home in the context of urban Texas. This setting is significant as it shows that sustainable living is not just for rural areas but is increasingly important in city environments as well. The image is bathed in warm, inviting colors that capture the famous Texas sunshine. This not only creates an appealing atmosphere but also subtly hints at the abundant solar energy potential in the region. Overall, this image effectively communicates the key points from the article: Green features in Texas homes can significantly increase resale value. Sustainable elements like solar panels, energy-efficient windows, and water conservation systems are becoming increasingly desirable. Eco-friendly homes are not just good for the environment but also for homeowners' wallets. The trend of green building is taking hold in urban Texas settings. This visual representation helps to drive home the message that investing in green home features in Texas is not just an environmentally conscious decision, but a financially savvy one as well.

For it found that homes built to LEED standards between 2008-2016 showed an 8 percent boost in value. All the while green homes built to a wider range of green home building standards saw a 6 percent increase in value.

Green Home Building Premium

For the research shows there is a ‘green home building premium’ in the Texas single-family home market. That also came from The University of Texas at Austin’s Dr. Greg Hallman.

For the average new home in our Texas MLS dataset sells for $311,000. I mean that’s a 6-8% green premium. For it represents a significant gain for home owners. Also, developers, real estate agents and brokers.

The Green Homes study looked at more than 3,800 green-certified homes, including LEED-certified homes, built in Texas between 2008 and 2016 to determine if certification raised the resale value of homes. The study was conducted by the Real Estate Finance & Investment Center at The University of Texas at Austin’s McCombs School of Business. It was based on an analysis of more than 230,000 homes in Texas and used a regression model taking into account interior floor area, number of bedrooms and bathrooms, garages and the age of the home, as well as whether or not homes were built according to green standards including LEED.

The Green Homes building study looked at more than 3,800 green-certified homes, including LEED-certified homes, built in Texas between 2008 and 2016 to determine if certification raised the resale value of homes. The study was conducted by the Real Estate Finance & Investment Center at The University of Texas at Austin’s McCombs School of Business.

Study Details

It was based on an analysis of more than 230,000 homes in Texas. Moreover it used a regression model taking into account interior floor area. Also number of bedrooms and bathrooms, garages and the age of the home. Furthermore, if the homes were built according to green standards including LEED.

LEED-certified homes benefit the triple bottom line of people, planet and profit. That’s by enhancing the health and wellbeing of occupants. Also saving costly environmental resources. For that’s like energy and water. In addition it’s providing cost savings to individual homeowners or residential building owners. On average, LEED-certified homes use 20-30 percent less energy than a home built to code. That’s with some homes reporting up to 60 percent savings. All which lowers energy costs.

LEED Homes Rating

The LEED Homes rating system was created in 2008. Especially as a way for single-family homes and multi-family buildings to achieve LEED certification. In addition, LEED Homes projects undergo a technically rigorous process to become certified. So that’s including multiple on-site inspections and quality assurance. More than 1.5 million residential units are currently participating in LEED in the world. USGBC’s 2015 Green Building Economic Impact report found that the residential green construction market is expected to grow from $55 million in 2015 to $100.4 million in 2018, representing a year-over-year growth of 24.5 percent. Currently, there are more than 6,890 homes certified or pursuing LEED-certification in Texas.

Finally and to learn more about the Green Homes, visit:

Sources: U.S. Green Building Council and the McCombs School of Business, Washington, D.C. – (July 11, 2017)