Are LEED homes worth more?

The short answer is yes. However, LEED homes are just hitting the market and there isn’t enough sales data. In the commercial market LEED buildings command rent premiums of $11.33 per square foot over their non-LEED counterparts and have 4.1 percent higher occupancy rates. On the sales side, commercial LEED buildings command an incredible $171 more a square foot. These buildings command higher rents and sales prices not because of the cost but because of the demand.

The Solaire, a green residential high-rise in NY York City, brings in rents 10% to 15% higher than market rates, and in Rocklin, Calif., the LEED-certified homes in the Carsten Crossings development outsold the competition 2-to-1.


While ‘green homes’ have been on the market, the features and benefits varied so widely it was hard to assign a value. However, the LEED benchmark in the residential market delivers clear and measurable benefits to buyers. The appraisal industry is starting to recognize the value of a building’s performance and according to the Appraisal Institute in Chicago, a $1,000 savings in utility costs adds $20,000 in value to a home.

The savings and a value of LEED home will only increase up as energy prices continue to rise and the awareness of a buildings ‘life cycle costs’ become more important to buyers.