How much are buyers willing to pay for Energy Efficiency?

In this recent article, Carmel Ford provides data from NAHB's recently released study, What Home Buyers Really Want (2019 Edition).  This author believes that the results underscore the importance of addressing energy efficiency measures in not only new build homes, but also existing home stocks.

The study was based on a survey of recent or prospective home buyers, and asks about features that they want in both their home and their community.  It concluded that the average respondent was willing to pay $8,728 in order to save $1,000 per year on reduced utility costs.  Wow - That is a lot!

The study also found that home buyers of more expensive properties (over $500,000 in value) will pay an average of $10,560 more to achieve these targeted savings.

The author also points out that these home buyers are looking for a 20% return on investment on the increased upfront costs of Energy Efficient Features.

These results are in line with Cost/Value studies done by Remodeling Magazine in years past that indicate that the only home improvement project that you can invest in that returns more than 100% of your investment is to upgrade your insulation.  They are also in line with studies done by Builders Magazine that show that 80% of new home buyers are interested in the energy efficiency features of home they are considering to purchase.

If increased comfort is not enough of a motivation for you to improve the thermal efficiency of your home, consider the incredible financial investment opportunity that it presents.  Extracts from an article from Carmel Ford article posted at www.eyeonhousing.org.