The new age of home building
The trend is not new: energy efficiency started as a buzz word, but quickly became a leading force in new product development. Consider vehicle manufacturers, electronics, washers and dryers, windows, refrigerators – consumers are reluctant to purchase one of these products if it isn’t deemed energy efficient. The same holds true with home building and housing science.
At Sun Ridge, we want to work with home builders so that you can offer what your clients are asking for; get ahead of the trend and ensure you will not be left to catch up in a competitive industry. A recent study by the NAHB helped to reveal “What Home Buyers Really Want.” The study reveals that home buyers want, “First and foremost, energy efficiency. Some of the most wanted features involve saving energy, i.e. energy-star rated appliances and windows, and an energy-star rating for the whole home. Nine out of ten buyers would rather buy a home with energy-efficient features and permanently lower utility bills than one without those features that costs 2 percent to 3 percent less.”
That myth needs to disappear. Depending on the situation, upfront costs to build or buy an energy efficient home can be slightly higher. However, operational cost-savings and increased resale value more than make up for the difference. A study done in California showed that, “green labeled homes sell at higher prices; a green label adds an average 9% price premium to sale price versus other comparable homes.” (Source: ‘The Value of Green Labels’ by Nils Kok & Matthew Kahn, July 2012)
The Appraisal Institute of Canada recognizes that enhanced energy efficiency can add to value.“Our members indicated that there was an increase in value. In fact, it was rated as one of the highest paybacks – relative to cost – that a homeowner might receive on home renovations.” Shelley Poirier -Professional Practice Coordinator, Appraisal Institute of Canada
Higher resale value is only one side of the story. Long term operational savings from an energy efficient home will be experienced for years to come.
Quite simply, consumers demand energy efficiency. Home buyers are more energy conscious and energy efficiency is a primary consumer expectation. With the addition of energy standards to the National Building Code, make sure that you are ready for the change. Government regulations will mandate even more energy efficiency provisions in the years to come. Get in now and be an early adopter in the industry. Position your company to gain the competitive edge.