SEATTLE, July 3, 2018 /PRNewswire/ -- Buyers are willing to
spend more for the comforts of a cooler home. A new Zillow® analysis i finds
that homes with air conditioning sold for 2.5 percent more than homes without it, which is a premium of nearly $5,500 for the typical U.S. home.
The premium for air conditioning is highest in San Antonio, where homes with air conditioning
sold for a 5.8 percent premium. Cincinnati is close behind, with a 5.7 percent premium for homes
with air conditioning. Homes with air conditioning also sold for a five percent premium in Detroit, Indianapolis and Las Vegas.
Buyers put a higher value on air conditioning than outdoor home features like a patio or deck. Air conditioning was listed as
a required feature by 62 percent of buyers, while a private outdoor space was deemed essential by 48 percent of buyers, according
to the 2017 Zillow Group Consumer Housing Trends Reportii.
Unusually hot summer days have become more common over the past few decades, according to the Environmental Protection
Agencyiii, which may help explain why air conditioning is becoming more of a necessity in many markets. Across the
country, 66.1 percent of homes that sold in the past year have air conditioning. In markets with some of the hottest climates,
air conditioning was in nearly every single home that sold in the past year. It was in 99.1 percent of homes sold in Las Vegas, and 97.9 percent of homes sold in Phoenix.
"With summer temperatures hitting record highs across the country, today's home buyer places a premium on the once-upon-a-time
luxury amenity of air conditioning," said Zillow Senior Economist Aaron Terrazas. "Individual
design preferences or decorating styles might deter buyers from certain homes, but there is a strong consensus in favor of air
conditioning, although in the nation's fastest-moving markets, AC may weigh relatively low for buyers eager to find any home they
can. In historically more temperate climates, some homes – especially older ones – aren't as likely to have air conditioning. But
in places where temperatures regularly reach triple digits, it's hard to find a home without air conditioning."
Renters put a slightly higher premium on air conditioning. The typical U.S. rental on Zillow in the last year with central air
conditioning rented for 2.8 percent more than rentals in the same market that don't have air conditioning, or about $40 per month.
This may be because renters are more limited than homeowners when it comes to adding air conditioning. They likely can't
install a central air or HVAC system for example, and window units may not be as effective at cooling an entire home.
The New York, Las Vegas and Phoenix metros – all markets with sweltering summers – had the highest rent premiums for air conditioning.
While central air conditioning is prevalent throughout Las Vegas and Phoenix, it is fairly rare in the New York metro, which includes northern
New Jersey and Long Island. Just 17.2 percent of New York metro
rental listings advertise air conditioning, compared with 54.7 percent of on-market rentals overall.
|
For-Sale Listings
|
Rental Listings
|
|
Metropolitan Area
|
Share Of
Homes Sold
With AC
|
Dollar
Premium
|
AC For-Sale
Premium
|
Share Of
Homes For
Rent With
AC
|
Dollar
Premium
|
AC Rent
Premium
|
|
United States
|
66.1%
|
$5,486
|
2.5%
|
54.7%
|
$40
|
2.8%
|
|
New
York/Northern
New Jersey
|
22.6%
|
$8,798
|
2.1%
|
17.2%
|
$275
|
11.6%
|
|
Los Angeles-Long
Beach-Anaheim,
CA
|
51.8%
|
$251
|
0.0%
|
42.5%
|
$135
|
4.9%
|
|
Chicago, IL
|
61.5%
|
$2,666
|
1.2%
|
32.7%
|
$54
|
3.3%
|
|
Dallas-Fort Worth, TX
|
89.5%
|
$2,982
|
1.3%
|
87.0%
|
$38
|
2.4%
|
|
Philadelphia, PA
|
54.2%
|
$10,566
|
4.6%
|
45.6%
|
$43
|
2.7%
|
|
Houston, TX
|
96.7%
|
$9,072
|
4.6%
|
94.4%
|
$117
|
7.6%
|
|
Washington, DC
|
83.2%
|
$6,807
|
1.7%
|
74.0%
|
$15
|
0.7%
|
|
Miami-Fort Lauderdale, FL
|
56.5%
|
$10,208
|
3.8%
|
34.8%
|
$64
|
3.4%
|
|
Atlanta, GA
|
84.0%
|
$2,519
|
1.2%
|
79.7%
|
$10
|
0.7%
|
|
Boston, MA
|
45.4%
|
$6,461
|
1.4%
|
23.8%
|
$171
|
7.2%
|
|
San Francisco, CA
|
33.7%
|
$6,925
|
0.7%
|
27.0%
|
$46
|
1.4%
|
|
Detroit, MI
|
63.2%
|
$8,470
|
5.5%
|
46.1%
|
$28
|
2.4%
|
|
Riverside, CA
|
87.8%
|
$9,271
|
2.6%
|
87.4%
|
$133
|
7.0%
|
|
Phoenix, AZ
|
97.9%
|
$4,314
|
1.7%
|
94.5%
|
$141
|
10.3%
|
|
Seattle, WA
|
8.4%
|
-$5,622
|
-1.1%
|
6.8%
|
-$66
|
-3.0%
|
|
Minneapolis-St Paul, MN
|
81.5%
|
$1,297
|
0.5%
|
64.8%
|
$53
|
3.2%
|
|
San Diego, CA
|
10.8%
|
$4,084
|
0.7%
|
12.1%
|
-$5
|
-0.2%
|
|
St. Louis, MO
|
81.3%
|
$695
|
0.4%
|
81.4%
|
$17
|
1.5%
|
|
Tampa, FL
|
84.3%
|
$2,279
|
1.1%
|
81.2%
|
$5
|
0.4%
|
|
Baltimore, MD
|
74.6%
|
$12,055
|
4.6%
|
61.4%
|
$11
|
0.6%
|
|
Denver, CO
|
45.2%
|
$531
|
0.1%
|
40.3%
|
$26
|
1.3%
|
|
Pittsburgh, PA
|
58.5%
|
$3,260
|
2.3%
|
42.0%
|
$43
|
4.0%
|
|
Portland, OR
|
32.6%
|
$6,464
|
1.7%
|
27.9%
|
$58
|
3.2%
|
|
Charlotte, NC
|
83.1%
|
$4,932
|
2.5%
|
87.2%
|
$46
|
3.6%
|
|
Sacramento, CA
|
81.1%
|
$4,490
|
1.1%
|
75.4%
|
$119
|
6.4%
|
|
San Antonio, TX
|
89.6%
|
$10,757
|
5.8%
|
87.2%
|
$108
|
8.1%
|
|
Orlando, FL
|
96.3%
|
$5,361
|
2.4%
|
93.9%
|
$84
|
5.8%
|
|
Cincinnati, OH
|
77.4%
|
$9,092
|
5.7%
|
63.9%
|
$29
|
2.3%
|
|
Cleveland, OH
|
67.4%
|
$6,182
|
4.4%
|
46.9%
|
$64
|
5.6%
|
|
Kansas City, MO
|
75.8%
|
$5,530
|
3.1%
|
60.2%
|
$13
|
1.0%
|
|
Las Vegas, NV
|
99.1%
|
$13,620
|
5.2%
|
98.1%
|
$135
|
10.4%
|
|
Columbus, OH
|
91.1%
|
$5,447
|
3.0%
|
74.0%
|
$10
|
0.8%
|
|
Indianapolis, IN
|
93.6%
|
$8,180
|
5.4%
|
76.9%
|
$66
|
5.5%
|
|
San Jose, CA
|
28.8%
|
-$2,084
|
-0.2%
|
32.3%
|
$76
|
2.2%
|
|
Austin, TX
|
92.5%
|
$8,074
|
2.7%
|
75.4%
|
$108
|
6.4%
|
Zillow
Zillow is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and
knowledge around the place they call home, and connecting them with great real estate professionals. In addition, Zillow operates
an industry-leading economics and analytics bureau led by Zillow Group's Chief Economist Dr. Svenja
Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more
than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which
asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the
Zillow Home Value Index over the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z
and ZG), and headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
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SOURCE Zillow