Buying cheap or buying smart? Analyzing young consumers’ green real estate purchase intention

Purpose This study aims to measure variables influencing the intention to purchase green real estate among young adult buyers, specifically focusing on the role of perceived quality, price sensitivity and customer green value orientation. It also examined perceived green value as a mediator between customer green value orientation and green real estate purchase intentions. Design/methodology/approach The study prepared a quantitative research design and collected data from potential young adult real estate buyers who were interested in green properties over a 12-month period in the Lower Mainland Region, British Columbia, Canada. A multistage stratified random sampling technique was used to procure 388 responses. Five proposed hypotheses were tested using structural equation modeling. Findings The outcomes of the study revealed that all three variables had a significant influence on purchase intention, among which perceived green value had the strongest influence. The study inferred that for young adult buyers, the quality, the price and other functional and emotional benefits from buying green real estate impact the purchase intention. The findings also demonstrated that the mediating factor perceived green value had a significant impact on customer green value orientation and purchase intention. Practical implications The study provides insights for real estate businesses, revealing how a focus on construction quality, transparent housing prices, long-term cost-saving benefits and marketing strategies that appeal to a sustainability-focused demographic can increase demand for green housing. Originality/value The study, to the best of the authors’ knowledge, is first to quantify the mediating effects of perceived green value between customer green value orientation and green real estate purchase intentions among young buyers in North America, a demographic that is yet to be extensively explored in this context.