Energy Efficiency Information and Valuation Practices in Rental Housing
Name
11146_2019_Article_9720.pdf
Size
708.31 KB
Format
Adobe PDF
Checksum (MD5)
e57332eca6737005d82cf0d56848732b
Author(s)
Chegut, Andrea
Eichholtz, Piet
Holtermans, Rogier
Palacios, Juan
Date Issued
August 27, 2019
Publisher
Springer US
Version
Final published version
Abstract
Abstract
The consensus in the academic literature is that energy efficiency is associated with transaction value premiums, but it is not clear to what extent property appraisers take account of this. We decompose external appraisals of rental housing by international valuation firms in England and the Netherlands in two waves, keeping the samples of valued homes constant between these years. We find a notable change in the behavior of external property appraisers. In England, energy performance does not impact assessed values in 2012, while estimation results for 2015 show a significant discount in assessed values for D-, E- and F- relative to C-labeled dwellings. For the Netherlands, we do not observe a significant relationship between energy efficiency and assessed values in 2010, but in 2015 we find that more energy efficiency leads to higher external valuations.
MIT Department
Massachusetts Institute of Technology. Center for Real Estate
Terms of Use
Creative Commons Attribution
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1007/s11146-019-09720-0
