Tag: "zillow"

04/19/19

  06:53:00 pm, by Jim Jenal - Founder & CEO   , 398 words  
Categories: All About Solar Power, Solar Economics, Residential Solar

Zillow Report: Solar Boosts Home Prices by 4.1%

The folks over at Zillow are out with a study of sale prices for homes with a solar PV system compared to those without and the results are pretty dramatic.  Nationwide, homes with a solar PV system sold on average for 4.1% more than those without.  Let’s take a look at their numbers and see what that might mean for a solar installation in the Run on Sun service area…

Let’s start with the data (always a good place to start!)…

home sale prices with PV

(Data from Zillow, Inc., graph by Run on Sun.)

The graph plots the increase in home price as both a percentage (the blue bars) and total dollars (the gold line).  New York city has the highest percentage increase (5.4%), while San Francisco, because of its sky high home values, has the highest dollar increase, a whopping $41,658!  To derive these numbers, the folks at Zillow analyzed homes “listed for sale and sold from March 1, 2018 to February 28, 2019, controlling for observable attributes of the homes, including bedrooms, bathrooms, square footage, age of the home and location."  In other words, these are the very latest data possible, compiled by people who understand real estate prices!

Good looking solarOf course, Run on Sun doesn’t operate in San Francisco, let alone New York, so what does the data say for our neighborhood?  Overall, Los Angeles percentagewise lags the U.S. average - 3.6% compared to 4.1% - but because our home prices are much higher than the national average, the dollar amount is still dramatic: $23,295!  The Zillow analysis does not say how large the solar power systems were on average, but the increase in Los Angeles sales prices is more than enough to cover the cost of installing an average sized system.  

Doing the math, the Zillow study is showing an average home cost in Los Angeles of roughly $647,000.  Here in Pasadena, the average home price is a good deal higher, which would mean that the increase in the home’s value by adding solar will almost certainly cover the cost (and then some) of even a very large solar power system. To be sure, it helps if the system is installed in a way that also makes the home look better (see above), so you will want to avoid Shortcut Solar for your install!

If you are looking to make an investment in your home that will benefit you both now, and when you go to sell, forget the designer kitchen - go solar!

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Jim Jenal is the Founder & CEO of Run on Sun, Pasadena's premier installer and integrator of top-of-the-line solar power installations.
Run on Sun also offers solar consulting services, working with consumers, utilities, and municipalities to help them make solar power affordable and reliable.

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