I recently read an article in Mortgage Professional America that suggested that the rise of electric vehicle sales is beginning to have an impact on home prices. “How can electric or hybrid vehicles actually have an impact on home values?” I thought. So, I grabbed my progressive lenses (ugh) and a second cup of coffee and continued reading.
The market for electric vehicles (hybrids in particular) is expected to grow to 30% of global vehicle sales by 2025 according to JP Morgan Research (2018 study). Realtor.com has found that homes in the top 20 neighborhoods in the US that are closest to electric charging stations are being listed for 1.5% more than homes that are further from the charging stations. A chief economist with realtor.com believes that there is a direct link between the prevalence of electric charging stations and higher home prices. However, it may be a situation of “Which came first? The chicken or the egg?” Are home prices actually rising because of the prevalence of charging stations or are wealthier homeowners more likely to be more environmentally conscious and simply have the ability to purchase more expensive electric vehicles?
The combined median listing price for the top 20 zip codes is $782,000, which is 1.5 times higher than their surrounding metro areas. The study showed that half of the homes in this zip code sell in 75 days (which is about 15 days slower than those in the surrounding metro areas).
Even those of us who have not yet purchased an electric vehicle understand the many perks of ownership. These include use of HOV lanes at all times, lower vehicle emissions, and certainly less dollars spent at the pump (if any).
Atlanta (30339 specifically) comes in at number 14 on the list of top 20 zip codes for electric vehicles based on the number of electric vehicle charging stations per zip code with 22 charging stations and a reported median list price of $448,000. The #1 zip code is Irvine, California with 77 stations and a reported median list price of $949,00. The number 20 spot goes to Columbia, SC with 21 charging stations and a median list price of $200,000.
I will say that in my 11 years of selling real estate in Atlanta, I’ve never had a buyer tell me that they must be within close proximity of an electric vehicle charging station, but could it be that we are moving in that direction? Would you pay more for a home if it were conveniently located close to a charging station? Inquiring minds want to know!