Green Real Estate: Meeting the Demand for Eco-Friendly Living

By Lisa Fant

As sustainability gains traction among consumers, the demand for eco-friendly homes is reaching new heights. Homeowners are investing in energy-efficient upgrades not only to trim utility bills, but to also make a positive impact on the environment. Being green isn’t just about saving the planet—it can also mean more green in your pocket when it comes time to sell. According to the National Association of Realtors® 2023 Residential Sustainability Report, energy efficiency stands out as a valuable selling point in property listings, with 63% of NAR members agreeing environmental awareness drives buyers to prioritize energy-efficient features to reduce their carbon footprint and contribute to long-term cost savings.

One of the significant revelations from the report is 32% of respondents reported using green data fields in their multiple listing service to highlight eco-friendly features and energy information in property listing descriptions. Green data fields allow real estate agents to spotlight eco-friendly features and energy information, making it easier for buyers to find desired features in homes. Utilizing green data fields in listings, real estate professionals can assist homeowners in identifying energy investments to enhance home performance and boost resale value.

Client interest in sustainability is on the rise, with nearly half of respondents noting varying interest levels among their clients. This shift in consumer preferences indicates the importance of offering eco-conscious options in today’s market. Realtors® are adapting to meet client demand, educating clients on investing in sustainability and connecting buyers with properties that align with their environmental values.

Energy-efficient homes incorporate features such as Energy Star appliances and smart home technology to reduce energy consumption and lower utility bills. Energy Star appliances, certified by the U.S. Environmental Protection Agency, meet strict energy efficiency guidelines, consuming less energy compared to conventional models. They not only save money on electricity bills but also help reduce greenhouse gas emissions. According to the U.S. Department of Energy, Energy Star appliances can reduce home appliance energy usage, and costs, by as much as 10 to 50%.

With more developments in environmentally friendly appliances and materials, prospective buyers are searching for energy-efficient homes and features. A study conducted by Freddie Mac found homes with energy-efficient upgrades resold faster and for about 2.7% more than homes without those upgrades.

Smart home technology, on the other hand, allows homeowners to monitor and control their home’s energy usage remotely through connected devices. This includes smart thermostats, lighting systems, and energy-efficient HVAC systems. Smart bulbs, for example, are one of the simplest ways to save money and energy usage with the added convenience of control from your smartphone. All smart bulbs are LED bulbs, which use at least 75% less energy than traditional lightbulbs. By optimizing energy usage based on occupancy patterns and preferences, smart home technology further enhances energy efficiency and comfort while reducing waste.

While Energy Star appliances, smart home technology, and do-it-yourself sustainable home landscaping are commonly adopted sustainability measures for both current and prospective homeowners, solar panels stand out as a significant green feature that can substantially increase a home’s value. A study conducted by the National Association of Home Builders found that homebuyers are willing to pay, on average, an additional $8,728 for a home that saves $1,000 in annual energy costs. In addition to their environmental benefits, solar panels have become increasingly popular for their potential to increase property value. Various incentive programs and tax breaks, such as the New Jersey Property Tax Exemption for Renewable Energy Systems and the New Jersey Successor Solar Incentive Program, further incentivize their adoption. In fact, New Jersey is a leader in the solar industry, with over 174,692 individual solar installations and ranking eighth in total installed solar capacity nationwide, according to the New Jersey Department of Environmental Protection.

Solar energy affordability has also significantly improved, thanks to initiatives like tax exemptions, net metering, and the federal solar tax credit in New Jersey. According to NAR’s report, solar panels are not only instrumental in reducing carbon footprints, but 34% of Realtors® perceive solar energy as a valuable investment, further increasing a home’s appeal to eco-conscious buyers.

This consumer value presents a win-win scenario for homeowners looking to embrace renewable energy while enhancing their property’s value. The U.S. Energy Information Administration expects solar power to account for the most growth in electricity generation in 2024. According to their 2024 forecast, the U.S. electric power sector will generate 43% more electricity from solar in 2024 than in 2023.

The increasing availability and benefits of sustainability and energy efficiency efforts paint a picture of homeownership and a real estate industry landscape poised for a greener, more sustainable future. By learning more about these green features and the growing demand for sustainable energy information, Realtors® can educate consumers and lead the drive toward a more ecologically responsible future, creating a greener residential landscape.

Eco-Friendly Home Swaps

INSULATION

The average homeowner could save at least 15% on heating and cooling costs by adding insulation in attics, crawl spaces, and basement rim joists, according to energystar.gov.

NATURAL LIGHTING

Embrace natural lighting during the day to conserve energy.

LAUNDRY

Wash your laundry with cold water whenever possible.

ENERGY EFFICIENT WINDOW TREATMENTS

According to energy.gov, about 30% of a home’s heating energy is lost through windows. They recommend swapping lighter window coverings for heavier drapes or curtains for an additional layer of insulation.