Influencing Housing Outcomes: Analyzing the Effects of Green Marketing Strategies

Abstract

Real estate agents provide unstructured information in marketing remarks for listed housing transactions that potential buyers may find valuable; however, research on their impact on housing outcomes is limited. This study provides empirical evidence on the impact of unstructured marketing remarks related to green housing features, specifically solar panels, on house prices and the number of days on the market. The results show that remarks about solar panels and financing options have a significant influence on prices and time on the market. After controlling for potential selection bias, our results indicate that properties including marketing comments related to owned, leased, or Power Purchase Agreement solar panels positively capitalize into higher selling prices, yet mentioning the presence of solar panels without mentioning the type of financing negatively impacts property prices. Other green attributes highlighted in marketing remarks show mixed price effects.

View PDF – https://doi.org/10.53383/100415