More than 65% of US homebuyers want 'environmentally friendly' home, but only 15% willing to pay more for one; 80% of buyers said they would be willing to pay more for a green home when wording of question was changed to emphasize utility savings: NAHB
April 28, 2014
– More than 65 percent of home buyers recently surveyed say they desire an “environment friendly” home, but only about 15 percent are willing to pay more for one, according to the “What Home Buyers Really Want: Ethnic Preferences” study from the National Association of Home Builders’ (NAHB).
But when NAHB changed the way it phrased the question to emphasize the benefits of environmentally friendly features in trimming utility bills, more buyers said they were willing to pay for it – 80 percent compared to 15 percent.
The study also found that energy efficiency was a top priority across races and ethnicities.
In the survey, buyers were asked to choose between a highly energy-efficient home that saved 2 to 3 percent on utility bills over the life of the home versus a home without those features. When couched as a long-term savings, more than 80 percent of buyers preferred the more expensive energy-saving home.
The NAHB survey looked at ethnic differences in green housing preferences. On average, Caucasians would pay $6,774 more for a home with energy efficiency features that lower utility bills; African American buyers are willing to pay $7,578 more; and Asian buyers will pay $8,251 more.
Hispanic buyers were willing to pay the most – an average of $9,146 more for a home with such features, according to the survey.
Florida Realtors®, formerly known as the Florida Association of Realtors®, serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 127,000 members in 61 boards/associations.