A new study shows a link between the prevalence of electric-vehicle charging stations and higher home prices.
Adobe Stock
Close proximity to electric-vehicle charging stations is becoming the new hardwood flooring when it comes to commanding a higher sale price. A new analysis by realtor.com finds that listings in electric vehicle-friendly housing markets sell at a premium.
The top 20 housing markets fall within nine states, with a majority of the Zip codes in California. Zip code 92618 in Irvine, California has the most charging stations, 77, while the top 20 Zip codes have an average of about 30 charging stations each. The combined median listing price for the areas that are most accommodating to electric vehicles is $782,000, 1.5 times higher than their surrounding metro areas and 2.6 times higher than the rest of the country.
Realtor.com used data from OpenChargeMap to track 19,743 charging stations mapped across 6,980 Zip codes, and then analyzed the housing markets of the top 20 areas with the most electric-vehicle charging stations.
“Our data shows there’s definitely a link between the prevalence of electric-vehicle charging stations and higher home prices,” says Danielle Hale, chief economist at realtor.com. “But there’s a difference between correlation and causation. The trend we’re seeing in the data is most likely a result of the fact that wealthier homeowners are more likely to purchase expensive electric vehicles. But regardless of the cause, if you’re shopping for a home in a Zip with an abundance of electric-vehicle charging stations, you’ll likely pay a premium.”
Hale says electric-vehicle charging stations are more common in areas with higher-priced homes, which not only reflects the affluence of those who live in the areas but also a preference for making environmentally friendly decisions.
Research has shown a connection between the fact that California highways allow single-occupant electric vehicles to use HOV (high-occupancy vehicle) lanes and electric-vehicle adoption, but this benefit is not exclusive to California.
“Having an electric vehicle can sometimes come with great perks such as being able to use HOV lanes without having several occupants in the vehicle,” says Hale. Anyone hoping to take advantage of this or the other benefits of being an electric-vehicle owner, such as contributing to lower vehicle emissions, will have to be able to charge their car, and having stations in close proximity or having a station already in the home means a buyer wouldn’t have to tackle this project after purchasing. This will definitely be noticed by current or aspiring electric-vehicle owners.”
It stands to reason that California leads the nation in charging stations, given that electric car sales make up 10 percent of all new cars sold in the Golden State, outpacing all other states. Policies that encourage electric-vehicle adoption also lead to more charging stations, which is why many California markets are on the list of top areas.
Beyond Tesla’s electric-car manufacturing presence in California, there are several contributing factors that have led to increased awareness of electric vehicles in the state, including its Zero-Emission Vehicle program, the Clean Vehicle Rebate Project, coastal political leanings such as pro-clean technology and pro-innovation, and higher-than-average wages.
Other housing markets that are accommodating for the growing electric-vehicle market include Florida, Georgia, Hawaii, Nevada, New York, Ohio, South Carolina and Texas. Although these markets are significantly more affordable than California’s electric vehicle-friendly Zip codes, the analysis found non-California Zip codes are seeing median listing prices that are still 1.5 times higher than their surrounding metro median and two times higher than the U.S. median listing price on average.