The price difference between label A and G is not really 140,000 euros

Difference of 140,000 euros is an overestimate

In the Financieel Dagblad of Nov. 12, Dirk Schoenmaker, professor of banking and finance at the Rotterdam School of Management, stated that according to figures from the Kadaster, the difference in average selling price between homes with energy label A and G increased from 60,000 euros in early 2020 to 140,000 euros in the second quarter of 2023.

Although the aforementioned figures are correct, it is not correct to say that this difference is entirely due to the energy label. In fact, these homes differ significantly in other respects as well. For example, for homes with label G, the median year of construction is 1933, while the median label A home was built in 2001

More differences than just the energy label

Label A homes are not only newer, but also larger (average 120 sq. ft. compared to 92 sq. ft. for label G), and better maintained. In fact, when it comes to finishing, label A homes score higher: realtors rate them with a 7.3, while label G homes get a 5.5. Analyses of sales photos through image recognition technology confirm the big difference in the quality of kitchens, bathrooms and living rooms, among others.

Model value shows real difference

Calculating the real effect of the energy label requires not the sales price, but a model-based valuation. This brainbay technology, which is also used by NVM appraisers, calculates the home value based on more than a hundred features. By keeping all features of a home the same except the energy label, the value effect of the energy label is calculated. In this way, brainbay provides quarterly insight into the added value of a better energy label.

Label A house is worth 55,000 euros more

The analysis shows that the real price difference between houses with label A and G is around 55,000 euros. When the energy label improves from G to A, and all other features remain the same, the value increases by 15.3%. At the average selling price of a label G home (now 358,000 euros), this means a value increase of around 55,000 euros. While this is a significant increase, it is nowhere near the 140,000 euros mentioned earlier.

Incorrect causal relationship

'The stated gap of 140,000 euros is thus an incorrect causal relationship and thus overestimates the value of the energy label,' states senior researcher Rogier Weck of brainbay: 'Although the energy label does affect the house value, it does not explain the full price difference between houses with label A and G. Model value technology allows us to calculate these kinds of differences more accurately.'

For more information contact brainbay at support@brainbay.nl or by phone at 030-8504500

Article: Reactie FD-artikel: het prijsverschil tussen label A en G is niet écht 140.000 euro - brainbay