Despite known environmental and cost-saving benefits associated with green building, a new study from The University of Texas at Austin and U.S. Green Building Council (USGBC) found that the average resale value of homes built to green building standards in Texas is worth $25,000 more than conventional homes.

According to USGBC, homes with LEED designation, the world’s leading green building rating system, fared the best in the study.

In the study, "The Value of LEED Homes in the Texas Real Estate Market: A Statistical Analysis of Resale Premiums for Green Certification," homes built from 2008 to 2016 according to LEED standards showed an eight percent increase in value. Other green standards like EPA Energy Star added six percent to home values.

Conducted by the Real Estate Finance and Investment Center at The University of Texas at Austin's McCombs School of Business, the study based its findings on an in-depth analysis of 230,000 homes in Texas including those that were conventionally built as well as more than 3,800 homes that were either LEED-certified or certified via other green standards.

"As developers and buyers continue to see the value in LEED, we expect the number of LEED-certified homes to increase in the Texas market," said Taryn Holowka, senior vice president of USGBC. "Homes that are built to meet green standards deliver more value to the seller and also ensure that buyers will have a high-value sale down the road and reap the benefit of lower utility bills while living in the home." 

More than 1.5 million residential units are currently participating in LEED worldwide, and more than 6,890 of those homes are either LEED-certified or pursuing LEED certification in Texas.