Economic Outlook & Forecast

$Promoting Green Features in Residential and Commercial Listings By Nadia Evangelou, NAR Research E co-friendly home features have broad appeal among homebuyers and can play a valuable role in the real estate market, according to the 2019 Sustainability Report from the National Association of REALTORS ® . NAR surveyed REALTORS ® about sustainability issues in the residential and commercial real estate markets, and the preferences they are seeing among consumers. • 59 percent of the respondents found that residential consumers were very or somewhat interested in sustainability. • 41 percent of the survey respondents said that their multiple listing services included fields where they can input data about a property’s energy efficiency and other eco-friendly features. • Seven in 10 residential and commercial agents and brokers reported that promoting energy efficiency in listings is either somewhat or very valuable. CAPITAL AREA REALTOR ® — March/April 2020

The survey also asked respondents about renewable energy and its impact on the real estate market. • A majority of agents and brokers (83 percent) said that solar panels were available in their market. • 36 percent said solar panels increased perceived property value.

Indeed, multiple studies have shown that homes with solar panel systems are valued and sold at prices above similar homes in their area. Lawrence Berkeley National Laboratory, a research laboratory affiliated with the U.S. Department of Energy, conducts continuous research on the impact of solar power across the country. Specifically, the Lab’s Selling Into the Sun report analyzed sales of solar-equipped homes in eight different states over 11 years with the goal of determining just how much value solar adds to a home’s sale price. The key finding: On average, homebuyers are “consistently willing to pay photovoltaic (PV) home premiums” of approximately $4 per watt of installed solar capacity 1 . This means a standard six-kilowatt solar power system can add $24,000 to the home’s resale value. According to NAR, solar panels are most prevalent in the Northeast (available in 94 percent of markets), and respon dents in the West were the most likely to report they increase perceived property value (41 percent). The top three issues and considerations cited by agents and brokers in NAR’s sustainability survey were: 1. Understanding lending options for energy upgrades or solar (38 percent) 2. The lack of information and materials provided to real estate professionals (32 percent) 3. Improving the energy efficiency of existing housing stock (31 percent)

Builders are also going green, choosing to build new homes that feature ENERGY STAR ® appliances and windows, programmable thermostats, and sustainable materials.

Data from the National Association of Home Builders 2 found that the most desirable green attributes in homes today are:

Most Wanted Green Features

All in all, there is an increasing demand for green living. More than 80 percent of buyers now say energy-efficient features are important in selecting their home. As REALTORS ® , it’s important for us to stay ahead of those trends and help interested clients to add those features to their home.