Energy Efficiency An Important Factor For U.S. Homebuyers

Nevin Barich

LOS ANGELES , April 25, 2019 (Industry Intelligence Inc.) – When my wife and I bought our current house in the summer of 2017, one of the key selling points was energy efficiency. Specifically, the house had solar panels on the back of the roof that were fully paid for and would help immensely with our utility bills, which was especially important given that this house was bigger than our old house and electricity costs were a concern.

A recent report by the National Association of Realtors shows that energy and stability are big factors in home-buying decisions.

According to the report, 59% of respondents found that residential consumers were very or somewhat interested in sustainability. Seven in 10 residential and commercial agents and brokers reported that promoting energy efficiency in listings was either somewhat or very valuable.

"The state of the environment is important to our members and their business practices, and the report shows that sustainability impacts consumers' home buying decisions as well," said NAR President John Smaby. "Realtors remain on the cutting edge of sustainability and continue to lead the conversation about energy efficiency in real estate."

Eighty-three percent of respondents in the survey said that solar panels were available in their markets, and 36% said that solar panels increased the perceived property value. However, only 8% of those surveyed said that solar panels decreased the perceived amount of time a home spent on the market. Solar panels were most prevalent in the Northeast (available in 94% of markets) and respondents in the West were the most likely to report they increase perceived property value (41%).

Other findings from the report:

---Twenty-five percent of brokers indicated that tiny homes - homes that are 600 square feet or less - were available in their markets, a 2% increase from 2018. Only 13% of respondents said that wind farms were available in their markets.

---Forty-one percent of respondents were aware that their Multiple Listing Service has green data fields, compared to only 14% that were unaware. Among those that do have green data fields, 35% of respondents used them to promote green features, 26% used them to promote energy information and 14% used them to promote green certifications.

---Thirty-nine percent said they were comfortable or extremely comfortable. Forty percent of respondents said they were confident or extremely confident in their ability to connect clients with green lenders. Only 6% responded that they were not at all confident.

---When asked what they considered as the top market issues and considerations regarding sustainability, agents and brokers named understanding lending options for energy upgrades or solar panels (38%), the lack of information and materials provided to real estate professionals (32%) and improving the energy efficiency of existing housing stock (31%).

Nevin Barich is the Consumer Products Analyst for Industry Intelligence, which can help YOU better address your own industry challenges. We invite you to come take a look at our service. Call us today at 310-553-0008 and we’ll schedule you for a 15-minute demo.

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