A 2025 study from the National Association of Realtors® (NAR) found a sharp increase in buyers' concerns about a home's energy efficiency. Realtors® who responded to an NAR survey reported that the proportion with clients who never mention energy concerns has tumbled to 29% this year from 57% in 2024.
Dollars and Cents, Not Global Warming
That's almost a doubling in the interest of home buyers in buying properties with low running costs. "The majority (58%) of respondents reported that fewer than one-fourth of their clients consider climate or environmental risk during purchase decisions," says the NAR.
That suggests that the main driver for wanting energy efficiency comes from lower utility bills rather than saving the planet. Fortunately, the former leads to the latter.
It should be no surprise that home buyers are keen to save a buck in any way they can. They're consumers, too. And, just like almost everyone else, they are struggling to make ends meet.
They struggled with rapidly rising prices during the pandemic and post-pandemic inflation spike. And price increases are still running hotter than the Federal Reserve's target of 2%, according to official figures.
Which Energy Efficiency Improvements Do Buyers Value?
The NAR study identifies the energy efficiency upgrades buyers like most:
- Windows
- Doors
- Siding
Double- or triple-glazed windows, draught-free doors and heavily insulated sidings can make a big difference to the bills associated with HVAC and other heating and cooling technologies.
However, the government's Energy Star website recommends other ways to minimize those bills:
- Air sealing — Eliminating draughts and the ingress of rogue air from the outside can complement improved insulation.
- Heating and cooling efficiency — With half of the energy usage of a home going on heating and cooling, it makes sense to install highly efficient HVAC or other gear.
- Buy energy-efficient appliances and equipment — Energy Star tests and certifies the most efficient products, from washers and dryers to refrigerators, ovens, hobs, room air conditioners, and air-source heat pumps. Buying these should help keep your utility bills low.
For those who'd like to go further, Unsustainable Magazine has other suggestions, including:
- LED lighting fixtures that consume 75% less electricity than traditional bulbs.
- Low-flow water fixtures that decrease water consumption while maintaining performance.
- Smart home technology, which helps monitor and optimize energy usage patterns.
Unsustainable also suggests that "The integration of renewable energy systems further amplifies cost savings. Solar panels, which have decreased in price by 70% over the past decade, now offer payback periods as short as 5-7 years. Combined with energy storage solutions, these systems provide protection against rising utility rates and potential grid disruptions."
Transportation Another Issue
The NAR's survey also revealed that home buyers are focusing on homes that are close to places they visit often, such as grocery stores, schools and highways. As many as 79% say they rank such proximity as either very important or somewhat important.
With gas prices highly variable (they're set by global markets, so it makes little difference how much we produce domestically), it's understandable that most buyers are keen to minimize their commute and general journey times. Meanwhile, just spending less time in the car is attractive to many.
Must Appraisers Catch Up?
Home buyers may be increasingly willing to pay a premium for a home with lower running costs. But the survey suggests that some appraisers, who put a value on homes for mortgage lenders, may not yet recognize the price difference that energy efficiency commands.
As many as 73% of realtors who completed the survey were unsure that their local appraisers were up to speed. And that could be a problem for home buyers with low down payments. Let's hope appraisers catch up soon.
