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Zillow: Air Conditioning Helps Raise Home Sale Prices

Phil Hall
Jul 03, 2018
A note to home sellers: You will score more profits if your residence has central air conditioning versus having an old-fashioned air conditioner hanging out the window

A note to home sellers: You will score more profits if your residence has central air conditioning versus having an old-fashioned air conditioner hanging out the window.
 
According to a new data analysis from Zillow, with air conditioning sold for 2.5 percent more than homes without it, averaging nearly $5,500 for the typical home. This applies for markets with a greater frequency of hot weather—most notably in San Antonio, where homes with air conditioning sold for a 5.8 percent premium—as well as markets where the weather is more diverse, such as Cincinnati with a 5.7 percent premium for homes with air conditioning.
 
Furthermore, potential buyers are especially eager for central air conditioning. Zillow’s data confirmed that air conditioning was listed as a required feature by 62 percent of buyers last year, compared to the 48 percent of buyers eager for a private outdoor space. The situation is identical with renters: typical rental on Zillow with central air conditioning rented for 2.8 percent last year than rentals in the same market that don't have air conditioning, or about $40 per month.
 
"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."

 
Published
Jul 03, 2018
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