Purpose – This study aims to test whether energy performance effects single‐family home sale prices. It also examines whether recommendations for supposedly cost‐effective energy efficiency measures, by intervention category (construction, installation or operation/control technical measures), are perceived as untapped potential – a real option – that effects sale prices. Design/methodology/approach – The energy performance measurement and dummy variables for three categories of improvement recommendations are included as explanatory variables in a hedonic regression analysis using transaction data and energy performance certificates data for 1,073 observations. Findings – Results indicate that better energy performance effects selling prices positively. Energy efficiency recommendations seem to have an impact on sale price; home buyers seem to require a larger “discount” for more complex types of measures. Research limitations/implications – The sample only includes houses in the Stockholm; so‐called sustainable buildings have not been specifically studied; and the heating source has not been accounted for. Originality/value – The EU energy performance certificates provide new information and measure energy performance more exactly than many earlier (proxy) variables. This is one of the first studies to test the effect of this information, and the first one using Swedish data.
Journal of European Real Estate Research – Emerald Publishing
Published: Nov 15, 2013
Keywords: Energy efficiency; Energy performance; Hedonic analysis; Property value; Swedish housing market