Green Homes Are in Demand
Earlier in the last decade, the real estate industry started on the path to understanding the importance many of today’s consumers are putting on ‘green’ building. With the collapse of the market later in the decade, the industry became more concerned with survival. But recently, home builders are seeing an increase in movement to environmentally motivated buying decisions. Once again, Green homes are in demand.
According to McGraw Hill Construction research dating back to 2006, the green home building market most rapidly accelerated during the housing downturn when builders experienced in green remained in business at higher proportions than those not knowledgeable about energy-efficient and green home building.
However, as the housing market is beginning to stabilize, we are seeing an increase in movement to environmentally motivated buying decisions. Once again, Green homes are in demand.
In conjuction with NAHB, National Association of Home Builders, McGraw Hill Construction has conducted four studies since 2006 on the demand for green homes.
The following Infographic shows the results of the study in 2012, According to Mainstream Green.
In a recent Wall Street Journal article they reported on the future opportunity in green new construction:
“Green sales are increasing. In 2011, these homes made up 17% of residential starts by value, up from 9% in 2010, according to the latest McGraw-Hill survey of members of the National Association of Home Builders trade group. That figure is expected to hit between 22% and 25% in 2013.”
Recent Green Home Study
The results of the latest study by McGraw Hill Construction were released in 2014, revealing the business benefits of green building:
Competitive marketing advantage: 51% of builders and remodelers find that it is easier to market green homes, up from 46% in 2012 and 40% in 2008.
- 68% of builders (up from 61% in 2011) report their customers will pay more for green, with 23% reporting that their customer will pay more than 5%
- 84% of remodelers report the same (up from 66% in 2011), with 55% reporting their customers will pay more than 5% for green features.
Customer willingness to pay for green features:
- 94% would recommend a green home to a friend.
- 92% would purchase another green home.
- 71% of respondents believe that green homes are, overall, of higher quality.
- 55% knew their home may have cost more than a non-green home, but believed the benefits outweighed the cost.
What does this mean to Frederick homeowners? If you are considering updating your home, look towards green appliances, amenities and improvements. Green homes are in demand, and the demand will increase. Plan to give your home the greatest appeal when you do consider selling.
You will need to do your research to see if the more expensive upgrades are worth the investment. Over-improving for your market is never a good idea, and that goes for environmental upgrades as well, that is, if you are expecting to get a return on your investment.
If you are selling your Frederick Home, give special attention to green updates and highlight them in your marketing. If your green updates have lead to low energy bills, for instance, highlight the fact in your marketing. Publish your bill and place it conspicuously in a brochure. Help your home stand out from the rest and appeal to the largest number of buyers.
For Your Inspiration
And what kind of green updates should you consider? Here is a list I’ve curated from all over the web, in no particular order:
- More and better Insulation, preferably with natural content. Attics, walls, air ducts. Foam pipe insulation.
- Energy Efficient Windows
- New doors.
- Solar Panels – this is more affordable with government grants or tax write-offs. Check with your state government and your energy company.
- Wind power in rural areas, like above, check for incentives.
- Newer, high efficiency furnace.
- Energy-Star appliances.
- Heated Floors. (we have them in our floors…wonderful!)
- Geothermal heating system if you’re building a new home.
- Tankless Water Heater.
Improvements everyone can afford:
- Caulk. A homeowners best friend. Seal up a leaky house to save on energy costs.
- Programmable Thermostat.
- Low flush toilets.
- Efficient shower heads.
- Efficient light bulbs. Timer for lights.
- Energy efficient power strip.
- Smart house technologies for remote access. Control the thermostat or close the drapes from your smartphone.
- A clothesline. If your HOA allows.
For more ideas on how to make your home more energy efficient, read more from Mother Earth News.