Contact Green Grid Analytics and Strategy Group LLC for permission regarding any republication or reuse of the

information contained in this document.

1

This study was funded in part by Built Green™ and the Master Builders Association of Seattle and
Snohomish Counties, Washington For more information visit http://www.builtgreen.net/contact.html.
Green Grid Analytics and Strategy Group, LLC.

Seattle’s Green Home Shoppers Are Willing To Pay

More for Green Homes
Learn More About Green Grid Analytics and Strategy Group
http://www.greengridgroup.com
Steven.silverman@greengridgroup.com
425.296.1971

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Method and Sample

 Method
 Online survey conducted in February, 2010
 Survey designed and analyzed by Green Grid Analytics and Strategy Group LLC
 Survey fielded by PeopleMetrics, Inc.

People Characteristics Home Characteristics

 430 Seattle Area home owners  Median Home Value $250k
 Median income $80k  60% 2000 ft2 or less
 74% college or more  33% in home < 5 years, 46% > 10 years
 55% female  42% expect to be in their home >10 more
 75% married years
 Median age 50  6% Live in Green Certified home
 3% expect to buy a home this year

All group differences in this project are tested with 95% confidence limits (i.e., p<.05).
Margins of error for percentage estimates are approximately ± 5%.
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Those who would look for a green home believe green certified homes
cost 11-15% more, on average
72% of Seattle Mean = 10 on 13-point scale shown below – 11-15% more
home owners Standard Deviation = 1.75
Median = 10
indicate they would
consider a green
home next time
they look to buy a
house. This chart

More than 25% More

11 - 15% More
focuses only on this
portion of the

Costs the Same

16 - 20% More
21 - 25% More
market.
21 - 25%Less
16 - 20%Less
11 - 15%Less

6 - 10% More
6 - 10% Less
If everything else were equal (such as

1 - 5% Less

1 - 5% More
same location, size of home, design, etc.),
and you could choose a green-certified
home over one that is not certified, how
much more or less does a green certified
home cost?

13-point scale as shown

N=308- Looking Green Only

 Those who would look for a green home expect to pay more
 In sales or marketing actions:
 Explain where costs are BOTH higher and lower to educate and inform Looking Greens
 Identify which costs they think are different and bust myths
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4
Those who would look for a green home believe green certified homes
cost 6-10% less to operate annually, on average

72% of Seattle n=308 Looking Green ONLY

home owners Mean = 4.7 on 13-point scale shown below
Standard Deviation = 2.32
indicate they would Median = 4
consider a green
home next time they
look to buy a house.

More than 25% More

This chart focuses

More than25% Less

6 - 10% Less
only on this portion of

Costs the Same

the market.

16 - 20% More
21 - 25% More
11 - 15% More
21 - 25%Less
16 - 20%Less
11 - 15%Less

6 - 10% More
1 - 5% Less
If everything else were equal (such as same

1 - 5% More
location, size of home, design, etc.), and you
could choose a green-certified home over one
that is not certified, how much more or less
would it cost annually to operate a certified
green home?

13-point scale as shown

N=308- Looking Green Only

 Understanding of operating costs has a higher variance

 Higher variation means less consistency in beliefs about how much operation costs
We incite  Opens the opportunity to discuss operating costs in more detail to show value
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Those who would look for a green home would be willing to pay 6-
10% more for a certified green home, on average
n=308 Looking Green ONLY
72% of Seattle Mean = 8.7 on 13-point scale shown below
home owners Standard Deviation: 1.39
Median = 9
indicate they would
consider a green
home next time
they look to buy a

More than 25% More

house. This chart
focuses only on this

Costs the Same

6 - 10% More
portion of the

16 - 20% More
21 - 25% More
11 - 15% More
11 - 15%Less
6 - 10% Less
market.

1 - 5% Less

1 - 5% More
If everything else were equal (such as
same location, size of home, design, etc.),
and you could choose a green-certified
home over one that is not certified, how
much more or less would you be willing to
pay for certified green home?
13-point scale as shown

N=308- Looking Green Only

 Willingness to pay a higher price suggests gains outweigh losses

 Gains are usually worth less than losses in assessing value – losing feels worse usually

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 Emphasize the real and perceived gains more strongly in marketing efforts
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6

Summary

 In our analysis, 72% of Seattle home owners indicate they

would consider a green home next time they look to buy a
house.
 The analysis in this document focuses only on this portion of the market.
 Those who would consider buying a green home:
 Believe green homes would cost 6-10% more to purchase
 Believe green homes would cost 6-10% less to operate annually
 Would be willing to pay 6-10% more for a green home

 To learn more contact:

 steven.silverman@greengridgroup.com
OR
 Built Green™ at http://www.builtgreen.net/contact.html
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insight
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