Economist's Commentary: February 27, 2008
Energy Efficiency: A Priority for Many Home Buyers
By Jessica Lautz, Senior Research Analyst
There has been a shift in the country to a more energy efficient, "greener", way of life. The affect of one's carbon footprint has been largely discussed in the media and in the political sector. From light bulbs, to grocery bags, to transportation and where one works, and what and where one eats, the greening of America has had a profound affect on society. The importance of energy efficiency has also made its way into the housing sector. Whether it is because of rising energy costs, or the social and moral obligation to the environment, or following popular trends, the majority of home buyers consider energy efficiency at least somewhat important when considering a home to purchase, 92 percent. Forty-six percent of home buyers consider energy efficiency a very important when considering a home for purchase.
As buyers direct the real estate market, their preferences help to determine what is important. As discussed in a recent Wall Street Journal article, "How Green is My Realtor", it is important for REALTORS to familiarize themselves with eco-friendly home features for home buyers who consider it a top priority in their home purchase. Buyers who considered energy efficiency very important were nearly twice as likely as those who considered energy efficiency less important to rank sidewalks as an important neighborhood feature. Proximity to a park and public transportation also were much more important to those who ranked energy efficiency in their home as very important.
Home buyers who consider energy efficiency very important are more likely to be repeat buyers, buyers looking for new homes, foreign-born buyers, and older home buyers. These buyers have a preference for Energy Star* appliances and features such as tankless water heaters, digital programmable thermostats, quality insulation, and high performance windows. Knowing who your clients are who appreciate energy efficient home can increase your client satisfaction and connection.
*Energy Star is a program of the U.S. Department of Energy and the U.S. Environmental Protection Agency that certifies and labels products that are energy efficient. For more information, visit: http://www.energystar.gov.
This is one in a series of commentaries by the Research staff of the National Association of REALTORS®.
