Does Sunlight Affect Property Value? What the Data Shows

The sunlight premium in real estate

Real estate agents have long known that sun sells. But recent research has put hard numbers on the sunlight premium. A study published in the Journal of Real Estate Finance and Economics analyzed thousands of apartment transactions and found that units with greater sun exposure commanded prices 2.4% to 3.2% higher per additional hour of daily sunlight. Studies in dense cities like New York and Hong Kong have found even larger premiums — up to 20% in extreme cases where ground-floor units in deep shadow are compared to sunny upper-floor apartments.

The effect is not limited to luxury properties. Research across multiple markets shows that the sunlight premium applies to all price segments, though it tends to be proportionally larger in markets with limited sun supply — northern cities, dense urban areas, and neighborhoods with tall buildings that create significant shadow zones. In Scandinavian cities, where winter days are short and dark, south-facing apartments can command premiums of 5-8% over comparable north-facing units.

Why buyers pay more for sunlight

The sunlight premium reflects several tangible benefits. Energy costs are lower in sun-exposed apartments — passive solar heating reduces winter heating bills, and natural light reduces the need for artificial lighting during the day. Health benefits are well-documented: natural light improves mood, sleep quality, and vitamin D production. Properties with good natural light also feel more spacious and inviting, which affects both livability and resale appeal.

There is also a practical dimension: sunlit apartments are more versatile. You can grow plants, dry laundry, and enjoy indoor warmth on cold days. Dark apartments require more artificial lighting, can feel claustrophobic, and often struggle with dampness and mold in humid climates — issues that directly affect property condition and maintenance costs over time.

How to evaluate a property's sun exposure for value

When assessing a property's sun exposure for buying or selling purposes, consider three key factors. First, compass direction — south-facing is the baseline premium orientation. Second, floor level — higher floors command more sun and therefore more value, particularly in dense urban areas. Third, surrounding buildings — a south-facing apartment with a new high-rise going up across the street may lose its sun premium entirely.

For sellers, demonstrating sun exposure is a powerful marketing tool. Photographing and showing the property during peak sun hours, mentioning the compass orientation in the listing, and using shadow data to show prospective buyers exactly how much sun the property receives can justify a higher asking price. For an in-depth look at how sun affects property decisions, see our real estate sun exposure use case.

The shadow risk: when neighboring development hurts value

One of the least-discussed risks in real estate is shadow impact from new construction. When a tall building goes up near your property, it can cast shadows that dramatically reduce your sun exposure — and with it, your property value. Several cities, including Boston and Toronto, have studied this effect and found measurable value decreases in properties that lost sun due to new neighboring development.

Before buying, check what is planned for nearby plots. A vacant lot to the south of a property is both an opportunity and a risk — it means unobstructed sun today, but a potential tower that could block that sun tomorrow. Understanding the development pipeline in your area and checking current zoning restrictions can help you assess whether your sun exposure is likely to be permanent or temporary. For more on how building shadows affect properties, see our detailed real estate sun exposure guide.

Using Coffee in the Sun for property valuation

Coffee in the Sun gives buyers, sellers, and agents an objective tool for evaluating sun exposure. Instead of relying on a brief property visit that might coincide with cloudy weather or an unfavorable time of day, you can check the building shadow situation for any time and date. Compare units on different floors, check how surrounding buildings affect the sun at various seasons, and quantify the difference in sun exposure between competing properties. For agents, this data can support pricing decisions and help justify the sunlight premium to skeptical buyers.