How Green Buildings Effect Both Price and Desire in the Real Estate Housing Market

Author(s) Information

Bryson Lino, California Polytechnic State University, San Luis ObispoFollow

College - Author 1

College of Architecture and Environmental Design

Department - Author 1

Construction Management Department

Degree Name - Author 1

BS in Construction Management

Date

3-2021

Primary Advisor/Subject Matter Expert (SME)

Phil Barlow, College of Architecture and Environmental Design, Construction Management Department

Abstract/Summary

There has been a recent emphasis on green building certification. Unlike other conventional building approaches, green building has emerged as a sustainable way of building in the real estate housing market. As a result of the green building revolution, the real estate developers have been prompted to acknowledge the essence of environmental and social factors on the investment properties’ value. It is through such a paradigm shift that the green building has redefined the real estate business. Given that climate change has emerged as a major global issue, interventions have been made to avert the emission of high levels of carbon monoxide. It is for this reason that the green building has emerged as an appropriate preventive solution to such serious concerns, especially considering that the real estate sector is one of the largest contributors of carbon dioxide emission globally. By embracing green building, trends have emerged whereby the real estate properties are being built, designed, maintained, and operated using environmentally responsible and resource-efficient processes. Globally, Leadership in Energy and Environmental Design (LEED) and Energy Star are the known certification frameworks aimed at ensuring that the real estate properties adhere to the set standards to be qualified as a green building. Real estate investors have been using such green building certifications as a strategy to attract more customers, especially those that are aware of some of the environmental consequences attributable to a conventional building. The survey results suggest that a majority of people will prefer purchasing green buildings as opposed to conventional ones. However, such green buildings attract comparable higher prices in the real estate housing market.

URL: https://digitalcommons.calpoly.edu/cmsp/438