Pay More for Energy Efficiency? Buyers Say Yes

Potential buyers are excited about energy efficient and green features in home, stating they’d be willing to spend more to acquire a home with green aspects.

The National Association of Home Builders reported that according to a survey of more than 3,000 buyers, they are willing to pay $9,292 on average more for a home if its energy-efficient qualities meant they could save $1,000 yearly on utilities. Homebuyers were most interested in Energy Star-rated windows and appliances, efficient lighting that uses less energy than traditional bulbs and Energy Star rating for the whole house, according to the survey. The Energy Star logo is found on all products that meet the U.S. Environmental Protection Agency and U.S. Department of Energy standards.

Buyers are also impressed with above-code standard certifications for health and wellness features, which has seen an uptick in interest since the coronavirus pandemic. Buyers were willing to pay $2,000 up front for these green certifications; some examples include zone heating, purified air appliances, indoor air quality sensors and a connection to the outdoors, the report said.

“There are a wide range of green features that buyers feel are desirable,” noted Paul Emrath, Ph.D., VP of surveys and housing policy research at NAHB. “Energy efficiency, though, tops the list of what they most want.”

Durable materials is a highly desired green feature, said 66% of respondents, while solar design is another popular addition, said 60% of buyers.

According to the Pennsylvania Department of Environmental Protection, the average family in the commonwealth consumes more than 10,000 kWh of electricity annually and spends more than $2,000 per year on energy bills. Pennsylvania also offers incentive programs to go green, making it a win-win situation for your clients to update their homes.