Dive Brief:
- A National Association of Home Builders survey found that between 2007 and 2015, homebuyers remained fairly consistent in their preferences for home and community green features However, while owners are willing to pay more for those features, they are still cost conscious to a certain degree.
- Similar to previous years' results, of the 150 homebuyers surveyed, 90% said ENERGY STAR appliances were essential or desirable, along with ENERGY STAR Windows, which received an 87% rating in the same category. Also rated as highly desirable were a whole-home ENERGY STAR rating and insulation that surpasses code requirements, while gas-filled insulating windows came in last among popular green features.
- The survey showed that approximately half of homebuyers were willing to invest in energy efficiency — in order to save $1,000 in utility bills — but needed a 20% rate of return in order to do so, while the average rate of return required was 9.3%.
Dive Insight:
As somewhat of a contrast, an NAHB first-quarter Remodeling Market Index (RMI) survey found that the prospect of newer or higher-value home features was the driving force behind most remodels, but, since 2012, energy and environmental efficiency had fallen in the general rankings of remodeling considerations.
The steady demand for green home features coincides with a 2015 Dodge Data & Analytics report, which determined that approximately 69% of builders and 78% of remodelers believed customers would pay more for green building features. The study also found that builders expect to be doing significantly more green work in the coming years, as more than half of respondents expected to do more than 60% green projects by 2020. Remodelers are lagging slightly behind builders in green predictions, as only one-third predicted doing more than 60% green work by 2020.
If residential consumers are unsure about their direction when it comes to energy efficiency, commercial building owners are picking up the slack. One theory is that companies like Ford, which is revamping its Dearborn, MI, campus to the tune of $1.2 billion, want to attract and retain the best talent pool possible, and "the best" are increasingly demanding workplaces that promote sustainability and wellness. Other companies, like car manufacturer Tesla on its gigafactory project, have included features like solar power and alternatives to natural gas lines with the motivation of greater sustainability and cost savings.
