The value of energy efficiency in the housing market: evidence from a Dutch mortgage portfolio

Abstract

As the European Union strives to achieve a fully decarbonized building stock by 2050, it is not without risk for homeowners, mortgage lenders, and Member States. However, a deeper understanding of these transition risks for the housing market provides opportunities to mitigate these risks as well. This thesis investigates the relationship between energy performance and property value using a sample of owner-occupied properties in the Netherlands, drawn from the Achmea Bank mortgage portfolio and covering the period 2008 to 2024. While previous studies have presented empirical evidence for both a price premium associated with energy efficiency and a price discount for energy inefficiency, the heterogeneity of these impacts across different residential market segments remains underexplored. Due to comprehensiveness of the dataset, this study creates various subsets and examines an extended timeframe, including the current state of the Dutch housing market. The findings reveal that energy efficiency is valued differently across property types and value segments. Additionally, the impact of energy efficiency on property value has intensified in recent years.