Do Energy-Efficient Homes have Better Resale Value?

smart home concept

In the past, energy-efficient homes were considered a “nice to have” but not a “need to have.” However, as awareness of climate change has increased, so has the demand for energy-efficient homes. Today, energy-efficient homes are seeing an increase in demand, and they often sell for more than their non-energy-efficient counterparts. Here are some indicator showing that energy-efficient homes have better resale value, as well as why these homes are commanding better prices from the market.

Realtor Findings

It’s a question on the minds of many homeowners: does energy efficiency pay off when it comes time to sell? The answer, according to a 2019 study by the National Association of Realtors, is a resounding yes.

According to the study, Green-certified homeowners value the savings from energy-efficient purchases, as well as the increase of the home’s value by adding solar panels and efficient heating and cooling. Home buyers have expressed that they are willing to pay extra for these features, as they provide many benefits to homeowners.


The online real estate platform found that homes with green features (like programmable thermostats, smart sprinklers and lighting, and energy-efficient double-pane windows) sell for up to 1.4% more than similar homes without those features.

What’s more, the study found that these homes also sell faster than their non-energy efficient counterparts. On average, an energy-efficient home will spend just 21 days on the market before being snapped up by a buyer. In comparison, the average non-energy efficient home takes 32 days to sell.

Of course, results may vary depending on location, and things may differ in other real estate markets. Nevertheless, this shows an overall growing trend towards energy-efficient homes getting more value.


Over in the UK, Rightmove Green Homes found that sellers who have a high domestic EPC rating (a review of a property’s energy efficiency) are getting up to 16% more when selling their homes. As the UK is undergoing a cost-of-living crisis, where essential goods in the UK are increasing in prices faster than household incomes, energy-efficient homes are becoming more and more attractive to buyers who want to save on their energy bills.

Property experts believe that the energy performance of homes will be a bigger factor when buyers are looking to purchase. As more and more people become energy-conscious, the resale value of energy-efficient homes is only going to go up.

a home being built with insulation being installed in the walls

Why Are they Selling More?

There are a number of reasons why energy-efficient homes are so popular with buyers.

1. Energy-Efficient Homes Save Money on Utilities

One of the biggest selling points of an energy-efficient home is that it will save the new homeowners money on their utilities. Utility bills are a significant monthly expense for most families, with the average American household spending 10% of their income on utilities. With rising energy costs, homes that have lower energy bills will become more premium in the next few years. As a result, families looking to purchase a new home will often be willing to pay more for an energy-efficient home that will save them money each month.

2. Energy-Efficient Homes have  lower Carbon Footprint

In addition to saving money on utilities, energy-efficient homes are also good for the environment. As more people become aware of the need to reduce our collective carbon footprint, they are increasingly interested in purchasing products and services that help achieve this goal.

As “eco-anxiety“, or concern about climate change and the environment mounts, in the near future, this will translate into a need to buy homes with minimal environmental impact. These energy-efficient homes allow families to reduce their carbon footprint without making major lifestyle changes, making them appealing to eco-conscious buyers.

3. Energy-Efficient Homes are More Comfortable

Energy-efficient homes are good for your wallet and the environment and are also more comfortable to live in. This is because energy-efficient homes are better insulated than their non-energy-efficient counterparts. Comprehensive energy audits are becoming more frequent in many American homes, as homeowners try to improve their home’s insulation and heating/cooling efficiency. These homes maintain a more stable temperature throughout the year, which can be a major selling point for families living in extreme climates.

4. Energy-Efficient Homes May Appreciate in Value More Quickly

As energy-efficient homes become more popular, they may also appreciate in value more quickly than non-energy efficient homes. This is because energy-efficient homes will become increasingly rare as the market shifts towards greener options. Families looking to purchase an energy-efficient home may be willing to pay more for the privilege, which could lead to a higher resale value down the line.

So there you have it: if you’re thinking of selling your home in the near future, investing in some energy-efficient upgrades may be a wise move. Not only will you fetch a higher price at resale, but you’re also likely to sell your home more quickly than if you left things as is.

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