Does green housing perform better? Residents’ post-occupancy perceptions and willingness-to-pay

Residents’ experiences and perceptions of green housing benefits are pivotal in fostering demand for sustainable living. In China, green housing promotion has primarily relied on top-down mandates or incentives, with limited attention to bottom-up driving forces. This study examines the actual performance of green housing in China’s emerging market through a post-occupancy evaluation and investigates its impact on residents’ demand for green housing. A survey and econometric analyses were conducted on three typical types of green housing projects in Beijing—operation-certified, design-certified and self-advertised—alongside nearby comparable conventional housing. Results show no significant difference in perceived operating costs between green and non-green housing residents; however, green housing significantly outperformed non-green counterparts in occupant satisfaction with livability. Official certifications were found to be slightly more effective than developer-led initiatives, with the operation-certified project particularly excelling in livability. Residents’ perceived superior livability of green housing increased their future willingness-to-pay (WTP) for green housing. While feedback on the performance comparison of green and non-green housing could further enhance green demand, it could not fully substitute for the role of residents’ living experience. Residents’ WTP was confirmed by the market transaction data, which indicated faster price appreciation in green projects. These findings provide valuable insights for developers and policymakers to promote sustainability in the residential sector through a “bottom-up” preference pathway.