Energy efficiency and economic value in affordable housing

Strong rental protection in the affordable housing market often prohibits landlords from charging rental premiums for energy-efficient dwellings. This may impede (re)development of energy efficient affordable housing. In the netherlands, affordable housing institutions regularly sell dwellings from their housing stock to individual households. If they can sell energy efficient dwellings at a premium, this may stimulate investments in the environmental performance of homes.we analyze the value effects of energy efficiency in the affordable housing market, by using a sample of 17,835 homes sold by dutch affordable housing institutions in the period between 2008 and 2013. We use energy performance certificates to determine the value of energy efficiency in these transactions. We document that dwellings with high energy efficiency sell for 2.0–6.3% more compared to otherwise similar dwellings with low energy efficiency. This implies a premium of some eur 3,000 to eur 9,700 for highly energy efficient affordable housing.